TBO Tek initial public offerings open on May 8

TBO Tek Limited shall open bids for its initial public offering of Equity Shares on Wednesday, May 08th, 2024. The Offer will close on Friday May 10th, 2024. The Anchor Investor Bidding Date shall be on Tuesday May 07th, 2024.

The Price Band of the Offer has been fixed at INR 875 to INR 920 per Equity Share. Bids can be made for a minimum of 16 Equity Shares and in multiples of 16 Equity Shares thereafter (“Price Band”).

The Offer comprises of fresh issue of Equity Shares aggregating to INR 4,000.00 million [INR 400.00 Crore] (the “Fresh Issue”) and an Offer of Sale by certain shareholders of up to 12,508,797 Equity Shares (the “Offer for Sale”, and together with the Fresh Issue, the “Offer”) (“Total Offer Size”).

The Company proposes to utilized net proceeds of the Fresh Issue portion of the Offer towards (i) Growth and Strengthening of its platform by adding new Buyers (defined below) and Suppliers which shall include (a) INR 1,350.00 million [INR 135 crore] towards investment in technology and data solutions by the Company, (b) INR 1,000.00 million [INR 100 crore] towards investment in its Material Subsidiary, Tek Travels DMCC, for onboarding platform users through marketing and promotional activities, and hiring sales and contracting personnel for augmenting the Supplier and Buyers based outside India, (c) INR 250.00 million [INR 25 crore] investment in sales, marketing and infrastructure to support organization’s growth plans in India; and (ii) Unidentified inorganic acquisitions and towards general corporate purpose amounting to INR 400.00 million [INR 40.00 crore]. (“Objects of the Offer”)

The Offer for Sale comprises of up to 2,033,944 Equity Shares by Gaurav Bhatnagar, up to 572,056 Equity Shares by Manish Dhingra, up to 2,606,000 Equity Shares by LAP Travel Private Limited (collectively referred to as “Promoter Selling Shareholders”); up to 2,637,040 Equity Shares by TBO Korea Holdings Limited and up to 4,659,757 Equity Shares by Augusta TBO (Singapore) Pte. Ltd. (together referred to as the “Investor Selling Shareholders”). (The Promoter Selling Shareholders and Investor Selling Shareholders, together referred to as the “Selling Shareholders”)

The Offer includes a reservation of up to INR 30 million [INR 3 crore] for subscription by eligible employees (“Employee Reservation Portion”).

The Equity Shares are being offered through the red herring prospectus dated April 28, 2024 (“Red Herring Prospectus” or “RHP”) filed with the Registrar of Companies, Delhi and Haryana at New Delhi (“RoC”).