TBO Tek shares erase entire 55% listing gains, trade flat; is it time to book profits?


Shares of TBO Tek Ltd made a strong Dalal Street debut on Wednesday but the stock turned range bound for the day. The stock gave some initial uptick after a strong listing pop and traded flat, around its listing price in the first half of its maiden trading session.

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Shares of TBO Tek were listed at a premium of 55 per cent and 50 per cent on NSE and BSE, respectively, over their issue price of Rs 920. Later, the stock was trading at Rs 1,380 level on BSE, the same as its listing price. It hit a high of Rs 1,455.95 earlier in the day.

Post listing, market participants have a mixed view on the counter. Some suggest investors exit the stock after a strong listing pop, while others suggest investors to hold the stock for a long-term view considering its leadership in the segment and growth potential driven by technological leadership.

TBO Tek witnessed a stellar debut on the stock exchanges, exceeding expectations. It was listed at a premium of 55 per cent over its issue price. This strong performance underscores the immense investor confidence in TBO Tek’s robust technological foundation and its potential for growth in the online travel sector, said Shivani Nyati, Head of Wealth, Swastika Investmart.

“TBO Tek has a robust technological foundation. Its modular and scalable platform positions it for efficient operations and data utilization in a dynamic digital travel landscape. The business model fosters efficient growth, further adding to its attractiveness for investors. TBO Tek’s strong listing signifies a promising future,” she said, suggesting investors may hold the stock with a stop loss of Rs 1,290.

The IPO of TBO Tek kicked off-for bidding on May 8 as the New Delhi-based company had offered its shares in the fixed price band of Rs 875-920 per share with a lot size of 16 shares. The company raised a little more than Rs 1,550.81 crore via IPO route, including a fresh share sale of Rs 400 crore and an offer-for-sale (OFS) of up to 1,25,08,797 shares.

The issue saw a solid bidding and was overall subscribed 86.70 times. The quota for qualified institutional bidders (QIBs) was booked a whopping 125.51 times The quota for non-institutional investors was subscribed 50.60 times. The portions reserved for retail investors and employees saw bidding for 25.74 times and 17.82 times, respectively during the three-day bidding process.

Despite muted market sentiments TBO Tek listed in line with expectations, considering the strong subscription demand during the issue from the QIB category, said Prashanth Tapse, Senior VP (Research), Mehta Equities, who suggested investors to book listing day profits and exit the counter.

“The healthy listing is justified as the company holds a strong position in the global travel and tourism industry which offers a comprehensive platform that creates significant value for both suppliers and buyers. We had recommended our investors to apply for listing gains only, hence, considering the ongoing market mood, we continue to hold our view,” he said.

Established in 2006, TBO Tek, formerly known as Tek Travels, is a travel distribution platform that offers travel inventory according to the needs of its customers and supports a wide range of currencies along with forex help. The company’s platform enables sellers to show and market their inventory and set prices for buyers.

Axis Capital, Goldman Sachs (India) Securities, JM Financial and Jefferies India are the book running lead managers of the TBO Tek IPO, while Kfin Technologies is the registrar for the issue.

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