TBO Tek cracks 7% after shares worth Rs 951 crore change hands in a block deal

Since listing on the bourses in May, earlier this year, shares of the firm have risen around 9 percent.

Shares of TBO Tek tumbled almost seven percent in the morning session after shares worth Rs 951 crore changed hands in a block deal on December 3.

Around 64.34 lakh shares, which represents 5.92 percent equity stake in the travel distribution platform, worth Rs 951 crore were exchanged at the price of Rs 1,476 per share. From the previous session's closing price, this comes at a discount of 6.6 percent.

At 10.20 am, shares of the company were quoting Rs 1,532.05, lower by 3 percent after trimming intraday losses.

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Goldman Sachs said that TBO Tek was consolidating demand-supply in a large, fragmented total addressable market and that the firm's distribution model had many positive characteristics.

Among the positives, TBO Tek's asset light balance sheet, negative working capital, strong FCF generation and low competition with few regulatory risks drove the brokerage's bullishness.

The brokerage has a buy call on the firm, with a target price of Rs 1,970 per share.

TBO Tek is a leading travel distribution platform in the global travel and tourism industry, providing services to buyers and suppliers in over 100 countries as of June 30, 2023. The company offers over 7,500 destinations and facilitates 33,000 bookings per day through its platform.

Since listing on the bourses in May, earlier this year, shares of the firm have risen around 9 percent.

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