Travel Boutique Online Garners Rs 696 Crore from Anchor Investors Ahead of IPO

Travel Boutique Online (TBO), a prominent online platform facilitating business-to-business (B2B) travel distribution, has successfully attracted Rs 696 crore in investments from anchor investors as it gears up for its initial public offering (IPO).

Prestigious Investor Roster Fuels Confidence

The company’s board, TBO Tek, authorized the issuance of 75,70,807 equity shares at a price of Rs 920 each to a distinguished group of anchor investors. Regulatory filings accessed from the Bombay Stock Exchange (BSE) reveal the names of these key investors, including Abu Dhabi Investment, ICICI Prudential, Kotak Mahindra Securities, Nippon Life, SBI Technology Opportunities, Axis Mutual Fund, Goldman Sachs, Aditya Birla, and Invesco India.

Domestic Mutual Funds Show Strong Interest

The filing further details the allocation of shares to anchor investors. Notably, domestic mutual funds, represented by 26 schemes, received a collective allotment of 3,155,236 equity shares.

IPO Details and Timeline

TBO’s public offering commenced on May 8th, 2024, and will continue until May 10th. The price band for the offering has been set between Rs 875 and Rs 920 per share, with a minimum bid quantity of 16 shares.

Financial Performance and Shareholding Structure

The company’s Draft Red Herring Prospectus (DRHP) outlines its fundraising strategy. TBO intends to raise capital through the issuance of equity shares with a face value of Rs 1 each. This offering will comprise a fresh issue of shares valued up to Rs 400 crore and an offer for sale of up to 12,508,797 existing shares.

As per the DRHP, Lap Travel holds the largest stake in the company at 25%, followed by Augusta TBO with a 24.32% ownership. Bhatnagar and Dhingra hold significant stakes as well, at 20% and 5.63% respectively.

Financial Highlights

The DRHP also sheds light on TBO’s financial performance for the nine-month period ending December 23rd, 2023 (FY24). During this timeframe, TBO Tek recorded a consolidated revenue of Rs 1,023 crore and a profit of Rs 154 crore. Notably, the company derives a significant portion of its revenue from hotels and packages (72%), with air ticketing contributing the remaining 25%.