Travel Boutique Online files DRHP with SEBI to raise Rs 400 Cr via fresh issue

Online B2B travel distribution platform Travel Boutique Online (TBO) has filed a draft red herring prospectus (DRHP) with the security and exchange board of India (SEBI). It has joined a small group of companies that have filed for IPO after becoming profitable.

In the DRHP, the Gurugram-based firm has proposed to raise funds through issue of equity shares of face value of Rs 1 each consisting of fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale of up to 15,635,996 equity shares.

Notably, TBO had previously filed DRHP in December 2021 to raise Rs 2,100 crore comprising a fresh issue of Rs 900 crore and OFS of Rs 1,200 crore.

TBO will utilise the capital towards growth and strengthening of the platform by adding new buyers and suppliers, inorganic acquisitions and general corporate purposes, according to documents submitted with the SEBI.

The offer for sale comprises 2,033,944 equity shares by co-founder Gaurav Bhatnagar, 572,056 equity shares by another co-founder Manish Dhingra and 2,606,000 equity shares by LAP Travel collectively referred to as promoter selling shareholders.

Among the investors, TBO Korea with 3,767,200 equity shares and Augusta TBO with 6,656,796 equity shares will join as an offer for sale.

As per the DRHP, Lap Travel controls the largest holding in the firm with 25% stake followed by Augusta TBO which has 24% stake in the company. Bhatnagar and Dhingra control 20% and 5.6% stake respectively.

Private equity firm General Atlantic recently acquired a minority stake in TBO through a secondary transaction. The equity firm now holds 7.5% stake in the company.

Axis Capital Limited, Goldman Sachs (India), Jefferies India Private Limited and JM Financial Limited are the book running lead managers of the issue.

Founded in 2006, TBO aims to simplify the business of travel for travel suppliers such as hotels, airlines, car rentals, transfers, insurance providers, cruises, rail and other vendors. For end consumers, TBO helps them discover and book travel for destinations worldwide and across various travel segments.

The firm claims that more than 40,000 annual transacting buyers get real-time access to global travel inventory of over 700 airlines and more than 1 million hotels on the platform. As of June this year, it has a presence in more than 100 countries.

As per data intelligence platform TheKredible, TBO registered a 2.17x surge in revenue to Rs 1,051 crore in FY23. The firm registered a 4X jump in profits to Rs 137 crore in FY23 from Rs 33.7 crore in FY22. TBO also disclosed its quarterly results where it posted Rs 334 crore in revenue during the first quarter of FY24 or Q1FY24 while its profits stood at Rs 47.3 crore.