B2B travel booking website TBO.com’s parent company TBO Teck Ltd has filed draft paper INR with capital markets regulator Sebi to raise INR 2,100 crore via an initial public offering (IPO).
Founded by Gaurav Bhatnagar and Ankush Nijhawan in 2006, TBO is a global travel technology company focused on providing a range of travel services to travel agents and tour operators across the world.
Due to COVID, the online travel platform experienced a decline in traffic in FY21, with a decrease in monthly transacting buyers and gross transaction value (GTV) to 14,382 and INR 3,396.41 crore from 18,344 and INR 12,166.54 crore a year ago. Revenue also dropped 75% a year ago and the firm reported a loss of INR 34.14 crore against a net profit of INR 72.93 crore last year.
The IPO consists of a fresh issue of INR 900 crore and an offer for sale (OFS) of INR 1,200 crore by its existing shareholder INR and promote INR. The OFS comprises up to INR 78.05 crore by Gaurav Bhatnagar, INR 100 crore by LAP Travel Pvt Ltd, up to INR 21.95 crore by Manish Dhingra, up to INR 361.40 crore by TBO Korea Holdings Ltd, and up to INR 638.60 crore by Augusta TBO Singapore Pte Ltd.
Currently, Gaurav Bhatnagar holds a 20% stake in the firm while Manish Dhingra has a 5.63% stake. Lap Travel has a 25% stake, TBO Korea Holdings 16.67% stake while Augusta TBO Singapore Pte holds a 29.45% stake in the firm.
The proceeds from the fresh issue worth INR 570 crore will be used for the company’s growth and strengthening of its platform by adding new buyer and supplier. The firm will also use INR 90 crore for strategic acquisitions and investments towards inorganic growth. Axis Capital, Credit Suisse Securities India, Jefferies India, and JM Financial are the book running lead managers to the issue.
