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TBO Tek makes strong market debut; lists at 50% premium over issue price

On the NSE, TBO Tek made debut at Rs 1,426 per share, a 55 per cent premium to its issue price of Rs 920

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SI Reporter Mumbai

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TBO Tek listing: TBO Tek made a strong stock market debut, with shares getting listed at Rs 1,380 per share, a 50 per cent premium to its issue price of Rs 920 per share on Bombay Stock Exchange (BSE).

On the NSE, the stock made debut at Rs 1,426 per share, a 55 per cent premium to its issue price of Rs 920 

At 10:02 AM, shares of TBO Tek were trading 2.92 per cent high at Rs 1,420.30. By comparison, S&P BSE Sensex was down 0.07 per cent at 73,056.03 levels.

"This strong performance underscores the immense investor confidence in TBO Tek's robust technological foundation and its potential for continued growth in the online travel sector. TBO Tek has a robust technological foundation. The company's modular and scalable platform positions it for efficient operations and data utilization in a dynamic digital travel landscape. The company's business model fosters efficient growth, further adding to its attractiveness for investors," said Shivani Nyati, Head of Wealth, Swastika Investmart.

TBO Tek's strong listing signifies a promising future. Investors may hold their position by keeping a stop loss at Rs 1,290, she added.

The IPO received an overall subscription of 86.69 times. The public issue was subscribed 125.51 times in the Qualified Institutional Buyer (QIB) category, 50.60 times in the Non-Institutional Investor (NII) category and 25.72 times in the retail category.

TBO Tek is a leading B2B travel distribution platform in the global travel and tourism industry providing a wide range of offerings operating in over 100 countries. It simplifies travel business for suppliers like hotels, airlines, etc and also for retail and enterprise buyers like travel agencies, tour operators, online travel companies and others.

Post Covid, the travel industry is seeing robust growth and is expected to grow at a compound annual growth rate (CAGR) of 8.3 per cent to reach $2.6 trillion by 2027 (from current $1.9 trillion). TBO Tek offers a wide gamut of travel offerings to its users and thus is seeing robust growth, according to analysts.

The company's ability to maintain high growth and profitability, coupled with its fine-tuned business model, instil confidence in its long-term prospects. As TBO Tek continues to monetize its digital platform and capitalise on emerging opportunities, the company is poised to emerge as a formidable player in the digital commerce landscape, according to BP Equities.

TBO Tek is well-positioned to drive additional growth by facilitating seamless global travel transactions on its platform. With the increasing diversity of travel preferences and destinations, the company is well-positioned to capitalise on the growing opportunities in the assisted travel segment, which caters to first-time travellers and those with complex itineraries, said analysts at Arihant Capital in IPO note.

Rather than disrupting the travel supply and buyer ecosystem, the company acts as a synergistic enabler. Airlines and hotels see the company as an extension of their distribution network, aiding them in expanding their reach into smaller, high-growth markets. Similarly, travel agents benefit from the platform by digitising their operations, gaining visibility into inventory, and accessing deals comparable to larger enterprises, analysts at Ventura Securities.

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First Published: May 15 2024 | 10:10 AM IST

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