{"id":20811,"date":"2024-05-08T12:29:13","date_gmt":"2024-05-08T06:59:13","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=20811"},"modified":"2024-05-08T12:58:20","modified_gmt":"2024-05-08T07:28:20","slug":"tbo-tek-ipo-review","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/tbo-tek-ipo-review\/","title":{"rendered":"TBO Tek IPO Review – Travel, Invest: TBO’s Flywheel Effect"},"content":{"rendered":"
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TBO Tek Limited IPO Details:<\/strong><\/h2>\n

Opening Date:<\/strong> May 08, 2024
\nClosing Date:<\/strong> May 10, 2024
\nListing:<\/strong> BSE and NSE
\nNumber of Shares:<\/strong> 1.68 Cr shares
\nFace Value:<\/strong> Rs 1 per share
\nPrice Band:<\/strong> Rs 875-920 per equity share
\nIssue Size:<\/strong> Rs 1,550.81 Cr
\nRecommendation: Aggressive investors can apply<\/strong><\/p>\n<\/div>\n

About the TBO Tek Limited Company:<\/strong><\/h2>\n

TBO (Travel Boutique Online<\/a>) Tek Limited was founded in 2006 and is a leading global travel distribution platform. Its platform enables the large and fragmented base of suppliers (hotels, airlines, car rentals) to display and market their inventory to a large and fragmented global buyer base (tour operators, travel management companies, online travel agencies).  It offers an integrated, multi-currency, and multi-lingual one-stop solution that assists buyers in discovering and booking travel for destinations worldwide, catering to various travel segments including leisure, corporate, and religious travel. Currently, they have about 7,000 suppliers and 160,000 buyers in more than 100 countries.<\/p>\n

Industry <\/strong><\/h3>\n

The global travel and tourism market stood at US$ 1.9 trillion in 2023 (+18.2% YoY), and is expected to grow at a CAGR of 8.2% to reach US$ 2.6 trillion in 2027.<\/p>\n

There are about 275,000 travel buyers in India, and this market is expected to grow at a CAGR of 13.9% from 2023 to 2027 and reach a market size of US$ 63.2 billion.<\/span> The Indian aviation market is on a high growth path with total passenger traffic to, from and within India growing every year. The Indian domestic air market was US$ 16.3 billion in 2023 and is expected to grow by CAGR of 15.8% between 2023 and 2027 to reach US$ 29.3 billion by 2027.<\/p>\n

Revenue model <\/strong><\/h3>\n

Revenue is bifurcated in two major streams, income from Air segment and income from Hotel and ancillary services.<\/span> It can be segmented geographically between domestic and international. Major markets abroad include Middle East & Africa, Europe and Latin America (26\/19\/9% respectively of 9M FY24 revenue).<\/p>\n

\"revenue<\/a><\/p>\n

The company earns take rate (markup fee or commission) charged on GTV (Gross transaction value). The B2B Rate Model involves receiving inventory from suppliers, applying a mark-up, and then passing it on to the buyers.<\/p>\n

\"net<\/a><\/p>\n

In the Commission Model, suppliers set the prices at which they want to sell to the end traveller, and TBO earns a commission on these sales, part of which is retained and part shared with the buyer. This strategic approach allows TBO to adapt to different market needs and enhance its service offerings in the travel industry.<\/p>\n

\"commission<\/a><\/p>\n

Competitors <\/strong><\/h3>\n

TBO does not have any exact comparable listed peers in India or abroad. But we can compare it with companies working in the similar domain.<\/p>\n

Webjet, is a company listed in Australia and offers one or more feature-wise similar products and services and also runs an OTA business. Apart from that, TravelCTM is a global leader in business travel management services. There are channel managers like RateGain, which solves for the specific needs of hotels and accommodation providers. Set out below is certain information in relation to TBO compared with that pertaining to Rategain, Webjet and TravelCTM for FY23.<\/p>\n

\"competitors\"<\/a><\/p>\n

Objects of issue <\/strong><\/h3>\n

TBO Tek IPO is a book built issue of Rs.1,550 crores. The issue is a combination of offer for sale of Rs.1,150 crores and fresh issue of Rs.400 crores<\/span> which will be used for the following purposes:<\/p>\n