TBO Tek Stellar Debut 55% Premium at Rs 1426 per share on NSE!

TBO Tek Limited, earlier known as Tek Travels Private Limited, is a travel distribution platform that offers travel inventory tailored to the needs of its customers and supports a wide range of currencies along with forex assistance, debuted on the Indian stock market today.

The company’s stock settled at Rs 1380 per share on the BSE, representing an impressive 50% premium over the final issue price of Rs 920 per share. Additionally, on the NSE, the company’s shares opened at Rs 1426 per share, indicating a gain of 55%. The market capitalisation on the BSE stands at around Rs 14,236 crore.

IPO Proceeds

The company intends to utilize the net proceeds from the issue towards funding the following objectives:

• Expansion of the supplier and buyer base
• Amplification of the value of our platform by adding new lines of business
• Inorganic growth through selective acquisitions and building synergies with our existing platform.
• Leveraging data procured to offer bespoke travel solutions to our buyers and suppliers.

Business Overview

Established in 2006, TBO Tek Limited, formerly known as Tek Travels Private Limited, is a travel distribution platform that offers travel inventory tailored to the needs of its customers and supports a wide range of currencies along with forex assistance.

The company simplifies the travel business for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, rail companies, and others, as well as for retail customers such as travel agencies and independent travel consultants, and corporate customers such as tour operators, travel management companies, online travel companies, super apps, and loyalty apps through its two-sided technology platform that enables suppliers and customers to connect seamlessly.

Subscription details

As of May 10, 2024, the TBO Tek IPO was subscribed 86.69 times. The public issue saw a subscription rate of 25.72 times in the retail category, 125.51 times in the QIB category, and 50.60 times in the NII category.

The IPO price band was Rs 875 and Rs 920, with a face value of Rs 1 per share and a lot size of 16 shares. The total size of the company’s IPO was Rs 1550.81 crore, and the final share issue price was fixed at Rs 920 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 55% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.