TBO Tek IPO: Should you subscribe to the Rs 1,551 crore issue?

The company recorded healthy growth in its financials, with profit growing 340 percent on-year to Rs 148.5 crore in FY23 and revenue from operations rose 120.3 percent to Rs 1,064.6 crore compared to the previous year.

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26 Aug, 2025 12:21

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TBO Tek’s IPO will open for subscription on May 8. Several brokerages have assigned a subscribe rating to the issue owing to the company’s capital-efficient business model with a combination of sustainable growth.

Offer Details

The Rs 1,550.81 crore issue is a mix of fresh issue of shares worth Rs 400 crore and an offer-for-sale of shares worth Rs 1,150.81 crore. Promoters Gaurav Bhatnagar, Manish Dhingra, and LAP Travel will be selling 52.12 lakh equity shares via OFS, while investors TBO Korea and Augusta TBO will be offloading 72.96 lakh shares. The price band for the issue, which will close on May 10, has been fixed at Rs 875-920 per share.

The company will spend fresh issue proceeds worth Rs 260 crore for its growth and strengthening its platform by adding new buyers and suppliers. Further, Rs 40 crore will be utilised for unidentified inorganic acquisitions, and the remaining funds for general corporate purposes.

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The Business

TBO Tek is one of the leading travel distribution platforms in the global travel and tourism industry in terms of gross transaction value (GTV) and revenue from operations for FY23 providing a wide range of offerings operating in over 100 countries by providing buyers with a comprehensive travel inventory according to the needs of their customers, and supporting a wide range of currencies along with forex assistance.

Should you subscribe to the TBO Tek public issue? Let's hear what analysts have to say

Swastika Investmart: Subscribe

TBO Tek has demonstrated a strong financial turnaround after FY21, with consistent growth over the past two fiscal years. However, the company relies on a limited range of suppliers and third-party systems, which could pose vulnerabilities. Additionally, the tourism industry itself is highly sensitive to external factors and intensely competitive.

“While the P/E valuation of 64x appears fully priced, the lack of direct peers makes a definitive comparison challenging. Considering TBO Tek's growth potential and potential listing gains, we recommend a subscribe rating for this IPO,” said analysts at Swastika Investmart.

Marwadi Financial Services: Subscribe

Considering the TTM (Dec-23) / FY24-Annualized EPS of Rs 16.80/18.93 on a post-issue basis, the company is going to list at a P/E of 54.77x/48.59x with a market cap of Rs 9,990 crore, whereas its peer namely RateGain Travel Technologies is trading at a P/E of 61.2x.

“We assign a ‘subscribe’ rating to this IPO as the company has a capital-efficient business model with a combination of sustainable growth. Also, it is available at a reasonable valuation as compared to its peers,” said analysts at Marwadi Financial Services.

Ventura Securities: Subscribe

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 digitizing their operations, gaining visibility into inventory, and accessing deals comparable to larger enterprises,” said analysts at Ventura Securities.

Anchor Investors

The company mobilised Rs 696.51 crore via anchor book launched for a day on May 7. Global investors including Abu Dhabi Investment Authority, Government Pension Fund Global, Neuberger Berman Investment Funds, Nomura Funds, Blackrock Global Funds, Fidelity Funds, Goldman Sachs, HSBC Global, and Eastspring Investments took part in anchor book.

Domestic mutual fund houses like ICICI Prudential Mutual Fund, Kotak Mahindra Trustee, Nippon Life India, SBI Mutual Fund, Axis Mutual Fund, Franklin India, Mirae Asset, Whiteoak Capital, Bandhan Mutual Fund, Canara Robeco Mutual Fund, and DSP Multicap Fund also bought shares in the company.

Financials

The company recorded healthy growth in its financials, with profit growing 340 percent on-year to Rs 148.5 crore in FY23 and revenue from operations rose 120.3 percent to Rs 1,064.6 crore compared to the previous year.

In the nine months ended December 2023 (the part of FY24), the company already surpassed its FY23 profits and recorded more than Rs 1,000 crore topline. Net profit grew by 28.2 percent on-year to Rs 154.2 crore and revenue increased by 30.7 percent to Rs 1,023.8 crore compared to nine months of FY23.

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