TBO Tek Limited IPO Opens Today- Check the Subscription Status and Other Details
After just a few hours after launch, the portion was entirely booked due to the overwhelmingly positive response from individual investors to TBO Tek's IPO. Both non-institutional investors and employees are responding favorably to the IPO. According to BSE data, the subscription status for TBO Tek IPO is 1.15 times.
The retail investor category obtained 3.14 subscriptions, the non-institutional investor quota received 2.08 subscriptions, and the Qualified Institutional Buyers (QIBs) component was booked at 1%. There have been 2.23 subscriptions made to the employee section.
TBO Tek Limited, a prominent name in the travel distribution sector, has established itself as a significant player in the global travel and tourism industry. Incorporated on November 6, 2006, as Tek Travels Private Limited, the company transformed TBO Tek Limited, reflecting its broader vision and operational scope.
The company's growth trajectory has been shaped by the vision and efforts of its promoters. Gaurav Bhatnagar and Manish Dhingra stand out as the key figures who, along with other stakeholders, have steered TBO Tek Limited through various phases of expansion and innovation. The recent IPO announcement highlighted the involvement of these promoters, who, along with LAP Travel, TBO Korea, and Augusta TBO, are set to play a pivotal role in the company's future endeavors.
Rooted in the capital city of India, New Delhi, TBO Tek Limited's registered office is located in the bustling commercial hub of South Extension Part-I. This strategic location has provided the company with the necessary impetus to tap into the burgeoning travel market and leverage the city's status as a major economic center.
The inception of TBO Tek Limited dates back to 2006, a period that witnessed a significant boom in the Indian aviation sector. The company was founded with the objective of simplifying the travel booking process for travel agents, which was becoming increasingly complex with the proliferation of low-cost carriers and a growing array of travel services.
TBO Tek Limited IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: May 8, 2024 to May 10, 2024).
Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Wednesday, May 15, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹1 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹875 to ₹920 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 16 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 16,856,623 shares (aggregating up to ₹1,550.81 Cr)).
Offer for Sale: The offer for sale, which is the amount and type of shares that the company is selling to the public. The offer for sale can be either primary or secondary, or a combination of both. A primary offer for sale means that the company is issuing new shares and raising fresh capital. A secondary offer for sale means that the existing shareholders are selling their shares and receiving the proceeds. A combination offer for sale means that both new and existing shares are being sold. (Offers for Sale: 12,508,797 shares of ₹1 (aggregating up to ₹1,150.81 Cr)).
Fresh Issue: A Fresh Issue in the context of an Initial Public Offering (IPO) refers to the creation and sale of new shares by a company to the public. Unlike an Offer for Sale, where existing shareholders sell their shares, a Fresh Issue results in the generation of new capital for the company. This capital is typically used for growth initiatives such as expansion, research and development, or debt repayment. (Fresh Issue: 4,347,826 shares (aggregating up to ₹400.00 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book Building IPO).
Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE, NSE).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: Not more than 10% of the Net Issue).
QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: Not More than 75% of the Net Issue).
NII (HNI) Shares Offered: NII stands for Non-Institutional Investors, which includes High Net-worth Individuals (HNIs) who bid for shares worth more than ₹200,000. The NII category is reserved for investors who do not fall under the retail or Qualified Institutional Buyers (QIBs) categories. Typically, a certain percentage of the IPO, usually around 15%, is allocated for NIIs to ensure a wider distribution of shares. HNIs within the NII category often have a higher chance of allotment compared to retail investors, making it an attractive option for those looking to invest larger sums in an IPO. (NII (HNI) Shares Offered: Not more than 15% of the Net Issue).
Conclusion
In conclusion, the TBO Tek Limited IPO presents a significant event in the financial markets, reflecting the company's robust growth and promising future. With a substantial increase in profit after tax and a strong revenue performance, TBO Tek's financial health appears solid. The IPO, set at a price band of ₹875 to ₹920 per share, aims to raise ₹1,550.81 crore, showcasing the company's confidence in its value proposition. As one of the leading travel distribution platforms, TBO Tek is poised to capitalize on the expanding global travel and tourism industry. Investors considering this IPO should weigh the company's impressive financial trajectory against the inherent risks of the market. Ultimately, TBO Tek's IPO could be a noteworthy addition to a diversified investment portfolio.
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