About the Company:
TBO Tek Ltd is one of the leading travel distribution platform in the global travel and tourism industry in terms of GTV and revenue from operations for Fiscal 2023.
Company provides a wide range of offerings and operates in over 100 countries by providing Buyers with a comprehensive travel inventory according to the needs of their customers; and supporting a wide range of currencies along with forex assistances.
Company simplifies the business of travel for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, rail and others, and retail buyers such as travel agencies and independent travel advisors.
Company also provides solutions for enterprise buyers that include tour operators, travel management companies, online travel companies, super-apps and loyalty apps through our two-sided technology platform that enables Suppliers and Buyers to transact seamlessly with each other.
Company’s platform allows the large and fragmented base of Suppliers to display and market inventory to, and set prices for, the large and fragmented global Buyer base.
For Buyers, Company’s platform is an integrated, multi-currency and multi-lingual one-stop solution that helps them discover and book travel for destinations worldwide, across various travel segments such as leisure, corporate and religious travel.
Company’s Revenue Business Model:
Company has two key revenue models for our transaction, i.e., B2B Rate Model where we receive inventory from Suppliers on which we apply a certain mark-up and pass on to the Buyers and Commission Model where our Suppliers fix the price at which they want to sell to the end traveller on which receive commission from the Supplier part of which we retain and part of which we share with the Buyer.
TBO at a Glance:
Company’s Platform:
Company’s business solutions aim to solve problems of discovery, reliability, transactions, and service by aggregating global travel supply and global travel demand on one platform and by enabling Buyers and Suppliers to transact seamlessly.
Through Company’s platform, hotels across the world are able to share live inventory and pricing information with us in multiple ways, including through XML feeds, JSON feeds or through our extranet platform.
Company’s Bookings per Day:
Company’s Value Proposition for Suppliers:
Company enables Suppliers to get instant access to a global Buyer base without them having to make any additional investments in technology or manpower. Suppliers can streamline their selling process, pricing and payments (with us acting as the merchant of record) by using our platform.
Company’s platform enables Suppliers to set their own pricing. Hotels also have the option to set pricing by various parameters such as origin country of the traveller, date of travel and length of stay.
As of December 31, 2023, on Company’s platform, Suppliers had instant access to over 159,000 Buyers in over 100 countries.
Company’s Value Proposition for Buyers:
Company’s integrated web and mobile-based platform allows Retail Buyers to operate their business through our platform. With free on-boarding and no installation requirements, our platform allows Retail Buyers to access and book global supply across all product categories, including airlines, hotels, car transfers, and sight-seeing, at business-to-business (“B2B”) rates.
Company believes that our platform makes it simpler for Buyers to discover, access, buy and pay for global travel inventory.
Company’s platform provides Buyers access to a variety of travel Supply which is bookable in real time.Company provided access to over 750 airlines, as of December 31, 2023. Buyers could access rates and inventory on our platform for over one million hotels worldwide, as of December 31, 2023.
Buyer Onboarding:
Company’s Buyer onboarding process leverages the strengths of our platform and has helped us to onboard an average of over 22, 49, 59, 57 and 62 new Buyers every day based on total Buyers onboarded during Fiscal 2021, 2022 and 2023 and the nine months ended December 31, 2022 and December 31, 2023.
This has helped company reach over 159,000 Buyers on the platform, as of December 31, 2023.
Company bought stake in BookaBed (a B2B accommodation supplier)
On March 31, 2022, Company entered into a share purchase agreement to acquire 51% of the outstanding equity interest of BookaBed, a B2B accommodation supplier, through our Material Subsidiary, Tek Travels DMCC.
Subsequently, company acquired the remaining 49% outstanding equity interest in BookaBed with effect from January 31, 2023. Company believes that the synergies between BookaBed and us will help increase our overall market share in Ireland and the United Kingdom.
Company Acquired Jumbo Tours Espana S.L.U.
Company’s Material Subsidiary, Tek Travels DMCC entered into a share purchase agreement on October 26, 2023 with Jumbo Tours Espana S.L.U. (“Jumbo Tours”) to acquire its online business, which was completed on December 18, 2023.
Jumbo Tours is based out of Spain holding more than 40 years of experience in the tourism sector. Jumbo Tours primary lines of businesses, include online business which comprises of bedbank platform for travel agents and tour operators, distribution platform with direct connection to suppliers and channel managers and transfers platform.
DMC business comprises of planning and implementing a wide range of services and experiences in certain destinations. Company expects this acquisition to help us with expanding our operations in Europe and get access to direct supply of hotels.
ZamZam and Kizan:
Company’s product offering, ZamZam focuses on religious travel in the Kingdom of Saudi Arabia and has an online portal for completing the full process of Umrah booking including Umrah packages, hotels, flights transfers, visa assistance, accommodation, ground arrangements and other services.
ZamZam is approved by the Ministry of Hajj and Umrah, Kingdom of Saudi Arabia, whereas Kizan caters to inbound leisure travellers in the Kingdom of Saudi Arabia.
Kizan assists Buyers in booking hotels, packages, transfers and sightseeing in the Kingdom of Saudi Arabia and is also one of the official destination management company partners for Saudi Tourism Authority.
Paxes:
Paxes is a web and mobile based platform for corporates and TMCs to manage business travel globally. Paxes supports corporates and TMCs with technology, content, and payment solution in the business travel space.
TBO Academy:
TBO Academy is an exclusive online-learning platform for travel agents and travel trade partners. The platform is available free of charge. It works as a learning platform for travel partners and internal employees globally.
The platform educates travel agents about various destinations and hotels, enhances soft skills and industry-specific knowledge through e-learning programs.
Management Team:
- Mr. Ankush Nijhawan (Designation: Joint Managing Director)
- Mr. Gaurav Bhatnagar (Designation: Joint Managing Director)
Objectives of the Issue:
Offer For Sale: (Rs.1150 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.400 cr)
1:Growth and strengthening of our platform by adding new Buyers and Suppliers:
a. investment in technology and data solutions by our Company.
b. investment in our Material Subsidiary, Tek Travels DMCC, for onboarding platform users through marketing and promotional activities; and hiring sales and contracting personnel for augmenting our Supplier and Buyer base outside India.
c. investment in sales, marketing and infrastructure to support organization’s growth plans in India
2:Unidentified inorganic acquisitions and general corporate purposes:
a. Unidentified inorganic acquisitions.
b. General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| 1.Growth and strengthening of our platform by adding new Buyers and Suppliers | |
| a. investment in technology and data solutions by our Company | 135.0 cr |
| b. investment in our Material Subsidiary, Tek Travels DMCC, for onboarding platform users through marketing and promotional activities; and hiring sales and contracting personnel for augmenting our Supplier and Buyer base outside India | 100 cr |
| c. investment in sales, marketing and infrastructure to support organization’s growth plans in India | 25 cr |
| 2.Unidentified inorganic acquisitions and general corporate purposes | |
| a. Unidentified inorganic acquisitions | 40 cr |
Positives for the Company:
Platform creating network effect with interlinked flywheels to enhance value proposition for partners.
- One of the key value propositions of company’s platform for both, Suppliers and Buyers is providing them instant access to a global network of partners on the other side of the transaction.
- As the Buyer base grows, we channel additional demand and therefore conduct more transactions through our platform. This attracts more Suppliers, which in turn, enables us to offer better pricing, wider range, and higher volume of supply across both, existing and new products.
Expand Buyer and Supplier base.
- Company will continue focusing on strengthening our Buyer base in both, existing markets and new markets by continuing to invest in growing our on-ground sales team. Company will also be augmenting the enterprise sales team to onboard large Enterprise Buyers, such as OTAs, tour operators, and travel management companies.
Continue to amplify the value of Company’s platform.
- Company’s platform’s modularity allows us to develop and launch new lines of businesses leveraging our existing capabilities. For example, company launched Zamzam for Umrah travel, and Paxes for the corporate travel market.
- Company believes that these opportunities are lucrative and target large markets. Paxes is a mobile-first corporate travel automation and self-booking solution focused on the business travel market.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31Dec 23 |
|---|---|---|---|---|
| Revenue | 176.5 | 511.9 | 1085.7 | 1039.5 |
| Net Profit | (-34.1) | 33.7 | 148.4 | 154.1 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| TBO Tek Ltd | 1 | 14.07 | 65.38 | 44.04% | 33.22 |
| Rategain Travel Technologies Ltd | 1 | 6.33 | 113.31 | 9.64% | 65.67 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 8th May 2024 |
| Issue Closes on | 10th May 2024 |
| Issue Price | Rs.875 – 920 |
| Face Value | Rs.1 |
| Retail Category Allocation | 10% |
| Minimum Lot | 16 Shares |
| Minimum Investment | Rs. 14,720 |
| Issue Constitutes | 15.52 % |
| Issue Size | Rs.1550 cr ($ 187 million ) |
| Market Cap | Rs.9990 cr ($ 1.19 billion ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 43,47,826 (Rs.400 cr) |
| Equity Shares Offered (OFS) | 1,25,08,797 (Rs.1150 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 1,68,56,623 (Rs.1550 cr) |
| Equity Shares Prior to the Issue | 10,42,39,961 |
| Equity Shares after the Issue | 10,85,87,787 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 13th May 2024 |
| Initiation of Refunds | on or Before 14th May 2024 |
| Credit of Equity Shares: | on or Before 14th May 2024 |
| Listing Date: | on or Before 15th May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 14.07 | 65.38 | 44.04% | 33.22 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| TBO Tek Ltd stands tall as a frontrunner in the travel distribution sphere, boasting unparalleled Global Transaction Volume (GTV) and operational revenue for Fiscal 2023. With a footprint spanning over 100 countries, it offers an extensive array of services catering to diverse travel needs.
The company’s hallmark lies in its commitment to simplifying travel commerce. By furnishing buyers with a comprehensive inventory tailored to their clientele’s demands, alongside robust forex support, TBO Tek Ltd ensures seamless transactions across borders. Catering to both suppliers—encompassing hotels, airlines, car rentals, cruises, and more—and retail buyers, including travel agencies and independent advisors, the company serves as a pivotal link in the travel ecosystem. Moreover, TBO Tek Ltd extends its expertise to enterprise buyers, encompassing tour operators, online travel companies, and loyalty apps. Its innovative two-sided technology platform facilitates seamless transactions, fostering enduring partnerships between suppliers and buyers. As the company continues to broaden its buyer and supplier base, investors are urged to seize the opportunity presented by its IPO, promising substantial listing gains and a solid addition to their long-term portfolios. |
| Company Contact Info: |
|---|
| TBO Tek Ltd E – 78, South Extension Part I, New Delhi – 110 049, India. Telephone: +91 124 499 8999 Email: corporatesecretarial@tbo.com Website: www.tbo.com |
| Registrar to the Issue: |
|---|
| KFin Technologies Limited Selenium, Tower B, Plot No. 31 and 32, Financial District Nanakramguda, Serilingampally Hyderabad – 500 032 Telangana, India Telephone: +91 40 6716 2222 E-mail: tbo.ipo@kfintech.com Website: www.kfintech.com |
| Check IPO Allotment Status: |
|---|
KfinTech Website (Click on the below Link)http://kfintech/IPO/Allotment_Status |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
