TBO Tek zooms to top gainer

TBO Tek is the top gainer on the BSE since the opening bell today’ from its close of Rs.1383.50, the stock opened much higher higher at Rs.1550, up 12% and rose further to an intraday high at Rs.1591.55, up 15%. Its 52-week high is at Rs.2000.

The stock is up after the company announced an agreement to acquire US-based luxury travel company Classic Vacations from Phoenix-based investment firm The Najafi Companies for an estimated total purchase consideration of up to $125 million.

The acquisition is seen as a strategic move to combine TBO Tek’s advanced technology platform and global inventory with Classic Vacations’ established network of luxury travel advisors and suppliers. Classic Vacations reported $111 million in revenue and $11.2 million in operating EBITDA for the fiscal year ended December 31, 2024.

Though the short term impact is optimistic (as seen today), market will soon want to see how this $125 million this is funded through debt, internal cash reserves, or equity issuance, as it may affect leverage or shareholding.