TBO Tek IPO subscribed 4.15 times on day 2 of offering

The initial public offering (IPO) of travel distribution company TBO Tek witnessed robust demand, with the subscription reaching 4.15 times on the second day of the offer on Thursday.

According to data from the National Stock Exchange (NSE), the Rs 1,551-crore IPO garnered bids for 3,85,31,952 shares against the 92,85,816 shares on offer.

Among the investor categories, the Retail Individual Investors (RIIs) segment saw exceptional interest, with subscriptions reaching 10 times, while the non-institutional investors segment was subscribed 8.18 times. However, the Qualified Institutional Buyers (QIBs) category witnessed a subscription of 17 percent.

The IPO comprises a fresh issue of up to Rs 400 crore and an offer for sale of up to 1,25,08,797 equity shares. Promoters Gaurav Bhatnagar, Manish Dhingra, LAP Travel, and investors TBO Korea and Augusta TBO are among those divesting shares in the offer for sale (OFS).

Priced in the range of Rs 875-920 per share, the IPO is scheduled to close on Friday.

TBO Tek recently secured approximately Rs 696 crore from anchor investors. Proceeds from the fresh issue will be utilised for expanding and fortifying the platform by onboarding new buyers and suppliers, pursuing inorganic growth opportunities, and for general corporate purposes.

As a leading travel distribution platform operating in over 100 countries, TBO Tek offers services to both buyers and suppliers, facilitating an impressive 33,000 bookings per day across more than 7,500 destinations.

In October 2023, investment firm General Atlantic announced its plan to acquire a minority stake in TBO.

Axis Capital, Goldman Sachs (India) Securities, JM Financial, and Jefferies India are the appointed managers for the offer. The company's shares are set to be listed on both the BSE and NSE.

(With PTI inputs)