Two new debutants

about 2 months ago
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TBO Tek made a great debut on the markets today, listing at a premium of 50% at Rs.1380 v/s IPO price of Rs.920. It went up to Rs1455.95 and is currently trading at Rs.1355 levels.

The IPO had met with a fantastic response, overall subscribing 86.69x, with QIBs taking the maximum at 125.51x, HNIs at 50.6x and Retail response too was very good at 25.72x.

TBO Tek is an online B2B travel distributor connecting suppliers (airlines and hotels) with buyers (travel agents), facilitating 45,000 bookings per day, on an average, on its platform All revenue earned is on transaction basis, with no fixed subscription or on-boarding fees.

Our conclusion in the IPO Analysis - TBO offers growth visibility with attractive pricing. Thus, we recommend ‘subscribing’ to the IPO.

The other new listing today was Aadhar Housing Finance and it was not very good – listing at Rs.314.50 v/s IPO price of Rs.315, the stock went up to Rs.329.80 but could not sustain much there and is now trading at Rs.316 levels.

The IPO had met with a lukewarm response. Overall it was subscribed 26.7x, with HNIs at 17.33x, Retail at 2.58x and QIBs at 76,42x.

The company, formerly part of Dewan Housing group, was acquired by PE Blackstone in June 2019. As of 31.12.23, it had assets under management (AUM) of Rs. 19,865 cr, mainly comprising home loans, averaging Rs. 10 lakh, given 2.5 lakh low-income group (LIG) retail borrowers. Loan book is geographically diversified, with 3 largest states Maharashtra, Uttar Pradesh and Rajasthan accounting for ~13% each.

Our conclusion - IPO pricing has left money on the table, so listing gains looks probable. But once this valuation gap is bridged, stock does not look too promising over the long term, for reasons enumerated above. Those looking for moderate listing gains, of say 15%-20%, may apply in the IPO.

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