TBO Tek seeks SEBI nod to raise Rs 2,100 crore via IPO

Travel services provider TBO Tek has submitted draft papers seeking approval from the Securities and Exchange Board of India (SEBI) to raise Rs 2,100 crore through an IPO.

TBO designs and produces travel applications which allow users to search and book tickets, and make online reservations including for hotel rooms through the web.

The company plans to raise funds via an initial public offer aggregating to up to Rs 2,100 crore comprising a fresh issue of equity shares of face value Rs 1 aggregating up to Rs 900 crore and an Offer for Sale (OFS) aggregating up to Rs 1,200 crore by the Promoter Selling Shareholder and Investor Selling Shareholders, according to TBO Tek DRHP (Draft Red Herring Prospectus), a report in Bloomberg said, adding that founders and investors will sell shares worth Rs 12 billion, while the company plans to raise Rs 9 billion through the sale of new stock. It also plans to raise Rs 1.8 billion through a pre-IPO placement.

The company proposes to utilise the net proceeds from the IPO towards growth by adding new Buyers and Suppliers amounting to Rs 570 crore; and for strategic acquisitions and investments towards inorganic growth amounting to Rs 90 crore and balance towards general corporate purpose.