Block deal: TBO Tek shares tank 6% on likely stake sale by 2 shareholders; turnover up

Shares of TBO Tek tumbled 6 per cent in Friday's trade amid high turnover on BSE, amid media reports suggesting two shareholders namely Augusta TBO Singapore Pte Ltd and TBO Korea Holdings were looking to sell up to a 3.1 per cent stake in the company for Rs 400 crore through a block deal.
Following the development, the stock plunged 5.5 per cent to hit a low of Rs 1,200 on BSE. A total of 72.98 shares changed hands on the counter against a two-week average of a mere 4,671 shares. The turnover stood at Rs 875.85 crore.

Media reports suggested the floor price for the deal has been set at Rs 1,180 per share. This was at 7.07 per cent discount to Thursday's closing price of Rs 1,269.90 for TBO Tek.

According to shareholding data, as of December 31, 2024, the promoter group held a 44.41 per cent stake in TBO Tek Ltd. Augusta TBO Singapore Pte owned 10,548,100 shares, or 9.71 per cent, while TBO Korea Holdings Ltd held 5,969,360 shares, or 5.5 per cent. Together, these two entities were part of the public shareholder group that held 53.42 per cent of the company’s shares as of the end of December.

On December 3, Augusta TBO Singapore Pte had previously sold 4,074,288 shares at Rs 1,465.14 each, while TBO Korea Holdings sold 2,305,712 shares on the same day, according to bulk deal data.

ICICI Prudential Flexicap Fund, SBI Technology Opportunities Fund, and Axis Mutual Fund, are among the mutual fund schemes that owned more than 1 per cent stake in TBO Tek as of the end of the December quarter.

For the December quarter, TBO Tek reported a 47.5 per cent year-on-year (YoY) growth in its Hotels & Packaging (H&P) segment, driven by 36 per cent organic growth and the consolidation of JumboOnline. While the Air ticketing segment showed more modest growth (up 3.7 per cent YoY), the consolidated Gross Transaction Value (GTV) grew by 26.2 per cent YoY (20 per cent organic), which was largely in line with JM Financial's estimates.

Consolidated revenue for the quarter grew by 29.2 per cent YoY, surpassing JM Financial's estimate by 4 per cent. The company's gross margin for the quarter stood at 70.3 per cent, reflecting an increase of 265 basis points YoY, thanks to an improving business mix.