Home Digital Marketing Travel distribution platform TBO Tek files draft papers with Sebi for an...

Travel distribution platform TBO Tek files draft papers with Sebi for an IPO

TBO Tek, a leading travel distribution platform, has filed a draft offer document with market regulator Sebi to raise funds through an IPO.

The issue includes fresh equity of Rs 400 crore and an offer for sale of up to 1.56 crore shares. Under the OFS, promoters Gaurav Bhatnagar, Manish Dhingra, LAP Travel and other selling shareholders TBO Korea, Augusta TBO will offload the shares.

TBO simplifies the business of travel for suppliers such as hotels, airlines and retail buyers such as travel agencies and enterprise buyers that include tour operators, and travel management companies through the two-sided technology platform that enables suppliers and buyers to transact seamlessly with each other.

The platform connects over 1,47,000 buyers across more than 100 countries with over one million suppliers, as of June 2023. Recently, leading investment firm General Atlantic acquired a minority stake in TBO.

In 2023 the travel and tourism industry is estimated to recover at pace, growing 18% year-on-year from 2022 to reach $1.9 trillion, and is expected to grow at a CAGR of 8.2% to reach $2.6 trillion in 2027.

For the three months ended June, its revenue from operations fell 68% year-on-year to Rs 345 crore, and profit after tax declined 68% year-on-year to Rs 47 crore.

The company and the selling shareholders may, in consultation with the book-running lead managers, consider a private placement for a cash consideration under the pre-IPO placement. It will be undertaken before filing of the red herring prospectus with the ROC.Net proceeds from the fresh issue are proposed to be utilised for growth and strengthening of the platform by adding new buyers and suppliers, unidentified inorganic acquisitions and general corporate purposes.

Axis Capital, Goldman Sachs (India), Jefferies India and JM Financial are the book-running lead managers of the issue. The equity shares are proposed to be listed on NSE and BSE.

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