IPO Synopsis
Details on IPO
Travel services provider, TBO Tek Ltd has filed preliminary prospectus with Sebi to raise Rs 2,100 crore through an initial public offering.
The public issue comprises fresh issue of equity shares of up to Rs 900 crore and an offer for sale worth up to Rs 1,200 crore by promoters and existing investors. It may also plan for a pre-IPO placement worth Rs.180 crores, and this would reduce the size of the original issue if done.
Axis Capital, Credit Suisse Securities (India), Jefferies India and JM Financial are the book running lead managers to the issue.
Objective of the Issue
The company proposes to utilise net proceeds from fresh issue towards
• growth and strengthening of its platform by adding new buyers and suppliers
• strategic acquisitions and investments towards inorganic growth
• for general corporate purpose
About Tek Travels Ltd
TBO Tek ltd. Is one of the leading global travel distribution platforms. It simplifies the business of travel for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, rail and others, and buyers that include, retail buyers such as travel agencies and independent travel advisors and enterprise buyers that include tour operators, travel management companies, online travel companies, super-apps and loyalty apps through its two-sided technology platform that enables Suppliers and Buyers to transact seamlessly with each other.
The company’s presence is spread across India, MEA, North America, Latin America, Europe, China and APAC.
The platform allows the large and fragmented base of Suppliers to display and market inventory to, and set prices for, the large and fragmented global Buyer base and for Buyers, it is an integrated, multi-currency and multi-lingual one-stop solution that helps them discover and book travel for destinations worldwide, across various travel segments such as leisure, corporate and religious travel, amongst others.
Tek Travels Ltd Financial Status
Financials
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Revenue |
141.81 |
570.79 |
440.86 |
|
EBITDA |
-22.69 |
84.95 |
43.78 |
|
PAT |
22.51 |
-0.26 |
88.17 |
|
EPS (basic in Rs.) |
-3.28 |
7 |
2.53 |
|
ROE |
-16.73% |
30.34% |
16.36% |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Total Assets |
576.16 |
793.00 |
826.25 |
|
Share Capital |
1.90 |
1.90 |
1.90 |
|
Total Borrowings |
0.00 |
0.00 |
0.00 |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Net cash generated from / (used in) operating activities |
49.65 |
-3.22 |
93.43 |
|
Net cash from / (used in) investing activities |
-25.94 |
-13.79 |
-41.13 |
|
Net cash flow from / (used in) financing activities |
-5.11 |
-8.37 |
-5.12 |
|
Net increase (decrease) in cash and cash equivalents |
18.60 |
-25.38 |
47.18 |
The Key Points are-
IPO Key Points
-
Strengths
1. Platform creating network effect with interlinked flywheels to enhance value proposition for partners
2. Modular and scalable proprietary technology platform allowing addition of new lines of business, markets, and travel products
3. Ability to generate and leverage large data assets
4. Capital efficient business model with a combination of strong growth and profitability
-
Risks
1. Revenue is substantially derived from the worldwide travel and tourism industry and factors that negatively impact that industry could have a material adverse effect on the business
2. Business highly depends on relationships with the Suppliers, thus, any impact on the existing relationships or inability of entering into new ones would hurt the business
3. Suppliers may change or modify the terms of arrangements, including a reduction or elimination of commission, incentive or other compensation paid to the company
4. Unable to continue to provide an attractive travel distribution platform to Buyers and Suppliers through various offerings
5. Exposed to pricing pressure from Suppliers
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-
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