TBO Tek Limited IPO: Today marks the opening of the initial public offering (IPO) for TBO Tek Limited, aiming to raise Rs 1,550.81 crore. Interested investors have until May 10 to subscribe to the issue, with bidding starting at 16 shares per lot and in multiples thereafter.
The IPO’s price range is set at Rs 875-920 per share. Allocation decisions will be made by May 13, and the company is scheduled to debut on the stock exchange on May 15.
In a recent report, Swastika Investmart recommended subscribing to the IPO of TBO Tek Limited, emphasizing its promising growth prospects. Despite a relatively high P/E valuation of 64x, the absence of direct peers complicates a straightforward comparison. However, taking into account TBO Tek’s considerable growth potential and the possibility of listing gains, Swastika Investmart advocates for a subscribe rating for this IPO.
newest GMP for TBO Tek IPO
As of May 8, 2024, at 8:59 AM, the grey market premium (GMP) for the IPO stands at Rs 530. Considering the upper price band of Rs 920 per share, analysts project an estimated listing price of Rs 1450. This suggests a potential gain of 57.61% per share, indicating strong investor interest and anticipation of favorable market performance post-listing.
Details of TBO Tek’s IPO
TBO Tek’s IPO is structured as a book-built issue, with a total value of Rs 1,550.81 crore. This includes a fresh issue worth Rs 400 crore and an offer for sale of 1.25 crore shares.
Allocation of shares within the IPO is delineated as follows: 75% for 10% goes to retail investors, 15% goes to eligible institutional buyers, and 15% goes to non-institutional investors.
Axis Capital Limited and Jefferies India Private Limited serve as the lead managers for the TBO Tek IPO, while Kfin Technologies Limited fulfills the role of registrar for the issue.
The primary aim driving the TBO Tek IPO is to secure capital for specific purposes, underlining the company’s strategic financial objectives.
The proceeds from the fresh issue are earmarked for bolstering platform growth and operational strength. This entails expanding the network with new buyers and suppliers, exploring potential acquisitions, and addressing general corporate requirements to fortify TBO Tek’s market presence.
In tandem with the Offer for Sale (OFS), key stakeholders such as promoters Gaurav Bhatnagar and Manish Dhingra, as well as entities like LAP Travel, TBO Korea, and Augusta TBO, will divest their shares.
The company embarked on its IPO journey after submitting draft prospectus papers in November of the preceding year. Having recently obtained regulatory approval earlier this month, TBO Tek Limited is poised to enter the public market.
Also Read: Indegene IPO
Established in 2006 under the name Tek Travels Private Limited, the company has since transformed into a comprehensive travel distribution platform, catering to diverse customer needs across various currencies, including offering forex assistance.
Disclaimer: Stockeasynow provides stock market news for informational purposes only and should not be construed as investment advice. Readers are strongly encouraged to consult with a qualified financial advisor before making any investment decisions.
