There Has Been Little Reaction to TBO Tek IPO Thus Far: Is It Worth Subscribing? Examine GMP Right Now

TBO Tek IPO: Investor reaction to TBO Tek Ltd.’s initial public offering, which was made available for subscription on Wednesday, has been mostly subdued so far. The Rs 1,559.81-crore initial public offering (IPO) attracted 1.70 times the subscription up till 10:41 am on Thursday, the second day of bidding, with offers for 1,57,73,152 shares as opposed to the 92,85,816 shares that were on sale.

Non-institutional investors (NII) obtained 2.88 times as many subscriptions as the retail category, which received 4.95 times as many. The subscription rate for qualified institutional buyers (QIBs) is about 1%.

On May 10, the TBO Tek IPO will conclude. On May 13, the share allocation will be finalized, and on May 15, the NSE and BSE will list the company.

The TBO Tek IPO’s price range was set at Rs. 875 to Rs. 920 per share.

TBO Tek Limited is a travel distribution platform that was established in 2006 and provides a broad variety of currencies along with currency assistance. It offers travel inventory according on the demands of its clients. Prior to then, it was called Tek Travels Private Ltd.

IPO GMP Today for TBO Tek

Market watchers report that unlisted shares of TBO Tek Ltd are selling on the gray market for Rs 540 more than the company’s issue price. With the public offering, the grey market is anticipating a staggering 58.7% listing gain, as shown by the Rs 540 grey market premium, or GMP. The GMP is dynamic and dependent on market mood.

The willingness of investors to pay above the issue price is shown by the “grey market premium.”

TBO Tech IPO: Is It Worth Subscribing?

In a note, stockbroker Mastertrust recommended that the IPO be subscribed to, stating that the travel and tourism sector, which was valued at $1.9 trillion in 2023, would increase at a compound annual growth rate (CAGR) of around 8.2 percent to reach $2.6 trillion in 2027. There is a lot of potential for both buyers and suppliers due to the trend of increased variety in who travels, why they travel, and where they go. TBO TEK LIMITED, a well-known travel distribution platform, seizes an opportunity by bringing together the world’s supply and demand for travel into a single platform and facilitating frictionless transactions between suppliers and buyers.

It also said that the company is presently benefiting greatly from the post-pandemic boom in the travel and tourism industry, which is driving its expansion. Companies of this kind have significant operational leverage as their operations expand. “Considering the tremendous growth and margin expansion potential, we strongly advise subscribing to this IPO.”

“A complex scenario for potential investors is presented by BOX Tek Ltd.’s IPO, marked by a substantial Offer for Sale (OFS),” said Tarun Singh, the managing director and founder of Highbrow Securities. This industry leader in global travel distribution, poised to grow after FY2023’s successes, manages a sector susceptible to worldwide unpredictability, as seen by the pandemic and ongoing geopolitical tensions that restrict travel. Its financials show this volatility, indicating a sensitivity that would not be compatible with the high prices that are being sought and providing shareholders with only modest medium-term benefits. In addition, there are concerns over the IPO’s suitability for TBO Tek’s operating scale due to its structure, which primarily relies on an OFS, and the meager revenues from the new offering.

He went on to say that while the firm sets high standards for itself, its valuation goals don’t appear to match its approach or the state of the industry when compared to its diverse peer group and lofty targets. Amidst financial manipulations that benefit insiders and regulatory oversight of the promoters, investors are left to assess the prospects of this prospect. I have decided to switch my focus to SME IPOs, which may more accurately represent value and stability in an unstable market climate, since the offering, even with the backing of well-known underwriters, lacks the compelling clarity required for a good investment case.

Concerning TBO Tek’s IPO

The TBO Tek IPO consists of an offer to sell 1.25 crore shares, valued at Rs 1,150.81 crore, and a new issuance of 0.43 crore shares, valued at Rs 400 crore.

The minimum lot size for an application is 16 shares for investors. Retail investors are needed to invest a minimum of Rs 14,720. The minimum lot size investment for bNII is 68 lots (1,088 shares), worth Rs 10,00,960, and for sNII it is 14 lots (224 shares), worth Rs 2,06,080.

The book-running lead managers of the TBO Tek IPO are Axis Capital Limited, Jefferies India Private Limited, Goldman Sachs (India) Securities Private Limited, and Jm Financial Limited. The issue’s registrar is Kfin Technologies Limited.