Retail investors were devastated, the IPO was oversubscribed on the first day, GMP also jumped

New Delhi. Travel distribution platform, TBO Tek’s IPO opened on Wednesday. The IPO received excellent response from investors on the first day and the issue was fully subscribed. Investors can bid for IPO shares worth Rs 1,550.80 crore till May 10. The company had raised Rs 696.51 crore from anchor investors on May 7 ahead of the launch of the IPO. The price band of the IPO (TBO Tech IPO Price Band) has been fixed at Rs 875-920 per share and the lot size has been fixed at 16 shares. The unlisted shares of this IPO are also making waves in the gray market. TBO Tech shares are trading at a 57 percent premium (TBO Tek IPO GMP).

On Wednesday, TBO Tech IPO was subscribed 1.15 times. It has received bids for a total of 1.06 crore shares, while 92.85 lakh shares are on offer. 43 lakh new shares worth Rs 400 crore have been issued in the public issue. In addition, there is an offer for sale of 1.25 crore shares worth Rs 1,150.81 crore. The reserve portion for eligible institutional buyers was filled 0.01 times on the first day. Similarly, the portion reserved for non-institutional investors was filled 2.08 times and the portion reserved for retail investors was filled 3.14 times. At the same time, the portion earmarked for employees received a bid of 2.23 times.

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10 percent is reserved for retail investors.
In TBO Tek IPO, 29.94 per cent share is reserved for qualified institutional buyers, 14.97 per cent share for non-institutional investors, 9.98 per cent share for retail investors and 0.19 per cent share for company employees. There are 16 shares in one lot of this IPO. According to the upper price band of Rs 920, a retail investor has to invest at least Rs 14,720.

Financial condition
TBO Tech was established in 2006. It was formerly known as Tech Travels Pvt. The company offers travel inventory tailored to customer needs and supports multiple currencies with forex support. The Delhi-based company will use the funds from the IPO to expand its supplier and buyer base.

TBO Tek’s profit was up 340% YoY to Rs 148.5 crore in FY23. Income from operations rose 120.3 percent to Rs 1,064.6 crore. The company’s net profit for the April-December 2023 period rose 28.2% year-on-year to Rs 154.2 crore. While revenue increased by 30.7% to Rs 1,023.8 crore.

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