TBO Tek, Aadhar Housing Finance IPOs to open today; ₹4,550 cr at stake

The initial public offerings (IPOs) of online travel distribution platform TBO Tek and Aadhar Housing Finance will open for subscription today, with both companies looking to collectively raise ₹4,550 crore by listing of shares on exchanges. A day ahead of opening of the issue, TBO Tek has raised ₹696.51 crore via anchor book, while Aadhar Housing Finance garnered ₹897.9 crore from anchor investors.

Ahead of the IPO, both companies have created enough buzz in the grey market as most analysts have recommended “subscribe” to the issue. The unlisted shares of TBO Tek are trading at a premium of 58% over the issue price (grey market premium) in the unofficial market, while Aadhar Housing Finance shares command a GMP of 22% ahead of the start of the bidding.

Here is all you need to know about upcoming IPOs.

TBO Tek

The company, a leading global travel distribution platform, looks to raise ₹1,550.81 crore via IPO route at a price band of ₹875-920 per share. The three public issues will close on May 10, while the allotment of shares is expected to be finalised on May 13, and stocks will be listed on the BSE and NSE on May 15.

Backed by global private equity firm General Atlantic, the IPO of TBO is a combination of a fresh issue of 0.43 crore equity shares aggregating to ₹400 crore and an offer for sale (OFS) of 1.56 crore shares worth ₹1,150.81 crore. Under the OFS, promoters Gaurav Bhatnagar, Manish Dhingra, and LAP Travel, along with other selling shareholders such as TBO Korea and Augusta TBO, will offload their shares.

The company has already mobilised ₹696.51 crore via anchor book by allocating 75,70,807 equity shares to anchor investors at ₹920 per equity share. The anchor book saw participation from global investors as well as domestic mutual funds. Abu Dhabi Investment Authority, Government Pension Fund Global, Neuberger Berman Investment Funds, Nomura Funds, Blackrock Global Funds, Fidelity Funds, Goldman Sachs, HSBC Global, and others were among global investors. The domestic mutual fund houses such as Kotak Mahindra Trustee, Nippon Life India, SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Franklin India, Mirae Asset, Canara Robeco Mutual Fund, and DSP Multicap Fund also participated in the anchor book.

The lot size for an application is 16 shares, which means the minimum investment amount required by retail investors will be ₹14,720 for one lot. The company has reserved 75% of the issue for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.

The company intends to use capital raised from the issuance of fresh equities for the expansion of the supplier and buyer base and for adding new lines of business. A part of the fund will also be utilised for inorganic growth through acquisitions and leveraging data procured to offer bespoke travel solutions to its clients.  

Founded in 2006, TBO is a travel distribution platform with ₹19,024 crore in gross transaction value (GTV) for FY23 and a presence in 100+ countries as of December 2023. The platform connects over 1,59,000 buyers, including retail buyers, travel agencies and independent travel advisors, with over 1 million suppliers such as hotels, airlines, car rentals, transfers, insurance providers, cruises, rail and other vendors. 

Aadhar Housing Finance

Blackstone Group-backed housing finance company plans to raise ₹3,000 crore via IPO route, comprising a fresh issue of 3.17 crore shares worth ₹1,000 crore and an offer for sale (OFS) of 6.35 crore shares amounting to ₹2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of the U.S.-based investment group, Blackstone. 

The company has fixed the price band at ₹300-315 per share for its IPO, which will open for subscription between May 8 and May 10. At the upper end of the price band, the company is valued at around ₹13,000 crore. The shares of the Mumbai-headquartered housing financial company are expected to list on the BSE and NSE on May 15.

The lot size for the IPO is 47 equity shares and in multiples thereafter, which means the minimum application amount for retail investors will be ₹14,805 for 1 lot.  The company has reserved half of the issue for qualified institutional buyers (QIBs), up to 15% for non institutional investors (NIIs), and the remaining 35% for retail investors.

The mortgage lender aims to use funds raised from fresh equities to meet future capital requirements for onward lending and general corporate purposes.

Established in 2010, Aadhar Housing Finance is one of the largest housing finance companies in India, servicing the home financing needs of the low-income segment. It has business interests across 20 states and union territories and has asset under management (AUM) of around ₹18,000 crore and an average loan ticket size of less than ₹10 lakh.

Ahead of the IPO, the company has raised Rs 897.9 crore from anchor investors by allocating 2,85,04,761 equity shares at the upper price band at ₹315 per share. The anchor book saw participation from marquee investors such as Morgan Stanley, Stichting Depository APG, WF Asian Reconnaissance Fund, Clarus Capital, Neuberger Berman Emerging Markets Equity Fund, Theleme India Master Fund, CLSA Global, and East Bridge Capital.