TBO Tek arrives in style, lists at 55% premium on market debut

TBO Tek's IPO was also subscribed over 86 times.

Shares of TBO Tek made a stellar entry on the bourses on May 15 as it listed at Rs 1,426 at NSE, a premium of 55 percent over the issue price of Rs 920.

The strong debut gains were also along the Street's expectations as the grey market data suggested listing at a premium of around 50 percent. Grey market data serves as an indicator of how the company's shares are positioned in the unlisted market and can fluctuate rapidly.

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Aside from the solid grey market data, the strong response received by the company's open offer also hinted towards robust listing gains. By the final day, TBO Tek's issue was subscribed 86.70 times. Investors bid for 80.50 crore equity shares, as against the 80.50 lakh shares up for grabs.

Qualified Institutional Buyers (QIBs) showcased the maximum interest and subscribed 125 times the portion allotted to them. Non-Institutional Investors (NIIs) were also active, subscribing nearly 50.60 times their allocated quota. Retail investors also showed healthy response, subscribing nearly 26 times the portion set aside for them.

The travel distribution platform had planned to raise Rs 1,550.81 crore through its initial public offer. The issue was a mix of fresh issue of shares worth Rs 400 crore and an offer-for-sale of shares worth Rs 1,150.81 crore.

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

The company also mobilised Rs 696.51 crore through its anchor book launched on May 7.

Popular domestic and global names like Abu Dhabi Investment Authority, Government Pension Fund Global, Nomura Funds, Blackrock Global Funds, Fidelity Funds, Goldman Sachs, HSBC Global, ICICI Prudential MF, Kotak Mahindra Trustee, Nippon Life India, SBI MF, Axis MF among other participated in the anchor book.

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