TBO TEK Limited files DRHP for an IPO of up to Rs. 2,100 crore
TBO TEK, a leading global travel distribution platform, is the second largest seller of full service airlines in India (Source: PGA Labs Report, IATA). It has a proven global playbook operating in 100+ countries and 56 currencies. The platform operates in 11 languages.
TBO TEK Limited (TBO TEK or TBO) plans to raise funds through an initial public offering (IPO) aggregating up to Rs. 2,100 crore comprising a fresh issue of equity shares (face value of Re. 1) aggregating up to Rs. 900 crore; and an Offer for Sale (OFS) aggregating up to Rs. 1,200 crore; by the promoter selling shareholder and investor selling shareholders. The promoters include AnkushNijhawan, Gaurav Bhatnagar, Lap Travel Private Limited and Manish Dhingra.
TBO TEK simplifies the business of travel for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, rail and others (collectively, “Suppliers”); and buyers that include retail buyers such as travel agencies and independent travel advisors (“Retail Buyers”). Its enterprise buyers include tour operators, travel management companies, online travel companies, super-apps and loyalty apps (“Enterprise Buyers”, together with Retail Buyers, “Buyers”). TBO’s two-sided technology platform enables Suppliers and Buyers to transact seamlessly with each other. It operates at the nucleus of the global travel and tourism market that stood at US$9.2 trillion in 2019, aggregating supply and demand and connecting Suppliers to Buyers and vice-versa.
TBO TEK has asset light business model with strong operating leverage and an agile technology platform. It uses data as corporate currency. The platform creates network effect with interlinked flywheels to enhance value proposition for partners. TBO’s experienced leadership team and its devoted founders have deep experience and expertise. The stellar Board of Directors has a wealth of experience.
TBO TEK proposes to utilise net proceeds from IPO towards growth and strengthening of its platform by adding new buyers and suppliers amounting to Rs. 570 crore. The net proceeds amounting to Rs. 90 crore will also be utilized for strategic acquisitions and investments towards inorganic growth. The balance will be used towards general corporate purpose.
The book running lead managers are Axis Capital, Credit Suisse, Jefferies and JM Financial.