Shares of TBO Tek Ltd. declined 4.39% to ₹1,214 on March 21 following a significant 6.7% equity stake sale, amounting to 70 lakh shares, through a block deal. The stock opened lower and traded in the ₹1,203.60 – ₹1,230.30 range after closing at ₹1,269.70 in the previous session. The company currently holds a market capitalization of ₹129.08 billion.
The block trade comes after Augusta TBO Singapore Pte Ltd. and TBO Korea Holdings Ltd. were reported to be offloading 3.1% of their stake in the company. According to Bloomberg, the offer floor price was set at ₹1,180 per share, reflecting a 7% discount to the stock’s closing price on Thursday. The sale was expected to raise approximately ₹4 billion ($46.3 million) for the selling entities.
Additionally, reports suggest that the deal includes a 30-day lock-up period on the remaining stake held by the sellers, restricting them from selling additional shares in the near term.
TBO Tek, a leading B2B travel-tech platform, has attracted significant investor attention due to its strong technology-driven solutions for travel agents, airlines, and hotels. However, the discounted pricing in the block trade has resulted in short-term stock pressure.
While the sell-off has weighed on TBO Tek’s stock price, analysts believe the company’s long-term growth potential and strong fundamentals may help stabilize investor sentiment. Market participants will be closely watching how the stock absorbs the selling pressure in the coming sessions.
