Summary:

  • TBO is a prominent travel distribution platform 

  • The funding round is led ABU Dhabi Investment, ICICI Prudential, Kotak Mahindra Securities, Nippon Life, SBI Technology Opportunities, Axis Mutual Fund, Goldman Sachs, Aditya Birla, and Invesco India

  • The ownership landscape of TBO reveals Lap Travel as the largest stakeholder, boasting a 25% ownership stake, closely followed by Augusta TBO, 

Travel Boutique Online (TBO), a prominent B2B travel distribution platform, has unveiled a lucrative opportunity for anchor investors as part of its maiden voyage into the public market. This move comes as the company sets sail on its initial public offering, offering a substantial sum of Rs 696 crore worth of shares to these select investors.

The board of TBO Tek has greenlit the offering, earmarking a total of 7,570,807 equity shares at an issue price of Rs 920 each for anchor investors, as revealed by regulatory filings accessed from the Bombay Stock Exchange (BSE). Among the prominent names securing a piece of this offering are ABU Dhabi Investment, ICICI Prudential, Kotak Mahindra Securities, Nippon Life, SBI Technology Opportunities, Axis Mutual Fund Goldman Sachs, Aditya Birla, and Invesco India.

Of the allocated shares, a significant portion totalling 3,155,236 equity shares found their way to 14 domestic mutual funds across 26 schemes, as disclosed in the filing.

The public offering commenced on May 8th, 2024, and will run until May 10th, 2024. Investors can partake in the offering within a price band ranging from Rs 875 to Rs 920 per share, with a minimum bid quantity set at 16 shares.

In its Draft Red Herring Prospectus (DRHP), the Gurugram-based company outlined its intention to raise capital by issuing equity shares with a face value of Rs 1 each. This issuance comprises a fresh issue of equity shares, aiming to aggregate up to Rs 400 crore, alongside an offer for sale of up to 12,508,797 equity shares.

The ownership landscape of TBO reveals Lap Travel as the largest stakeholder, boasting a 25% ownership stake, closely followed by Augusta TBO, which commands a 24.32% stake. Bhatnagar and Dhingra, with ownership stakes of 20% and 5.63% respectively, also wield significant influence within the company.

Financially, TBO Tek has demonstrated robust performance, recording consolidated revenues of Rs 1,023 crore during the nine months spanning March 2023 to December 2023 of the fiscal year 2024. Impressively, the company yielded a profit of Rs 154 crore during this timeframe. Noteworthy is the revenue composition, with income derived from hotels and packages constituting 72% of the total revenue, while collections from air ticketing contributed 25% to the revenue stream.

This strategic move into the public market underscores TBO’s commitment to expansion and growth, leveraging the confidence of anchor investors to propel its journey forward. With a solid financial foundation and a clear revenue strategy, the company appears poised to navigate the dynamic landscape of the travel industry with confidence and resilience.