On March 21, a significant financial movement occurred in the travel technology sector as three prominent mutual funds—SBI Mutual Fund, ICICI Prudential Mutual Fund, and Nippon India Mutual Fund—jointly acquired a 4.12% stake in TBO Tek, a leading travel distribution firm, for approximately ₹537 crore. This transaction was executed through the open market, showcasing the growing interest in TBO Tek’s innovative services related to tours and travel.

Key Details of the Bulk Deal

In a series of transactions on the BSE, a total of 44.72 lakh shares were purchased by these mutual funds. Here’s a breakdown of their acquisitions:

• Nippon India Mutual Fund: Acquired 28.11 lakh shares
• SBI Mutual Fund: Purchased 8.78 lakh shares
• ICICI Prudential Mutual Fund: Secured 7.83 lakh shares

The average purchase price for these shares was around ₹1,200, which led to a combined investment of ₹536.75 crore. This bulk acquisition highlights the confidence these funds have in TBO Tek’s future growth.

Shareholder Movements

In addition to the mutual fund purchases, two public shareholders, Augusta TBO (Singapore) Pte and TBO Korea Holdings, divested a combined 6.7% stake in TBO Tek for roughly ₹870 crore. Here are the specifics:

• Augusta TBO (Singapore) sold 46.29 lakh shares, reducing its stake from 9.71% to 5.41%.
• TBO Korea Holdings offloaded 26.20 lakh shares, lowering its holding from 5.50% to 3.08%.

Both parties sold their shares at an average price between ₹1,200.02 and ₹1,200.04, resulting in a total transaction value of ₹870.02 crore.

Market Reactions

Despite the influx of investment from major mutual funds, TBO Tek’s shares experienced a 4.93% decline on the BSE, closing at ₹1,207.35. This drop follows a previous stake sale in December 2022, when Augusta TBO and TBO Korea Holdings collectively reduced their stake by 5.9% for around ₹935 crore.

Conclusion

The recent bulk deals involving TBO Tek reflect a dynamic shift in the travel technology market, with mutual funds showing a keen interest in the company’s potential. As these transactions unfold, investors and market analysts will be closely monitoring TBO Tek’s performance and strategic developments in the coming months.

For more insights on market trends and investment opportunities, explore our latest articles on mutual funds and travel tech innovations.