Aadhar Housing Finance IPO vs TBO Tek IPO | Which One Should You Bet On?
Today marks the opening of the Initial Public Offerings (IPOs) for TBO Tek Ltd, an online travel distribution platform, and Aadhar Housing Finance Ltd, aiming to collectively raise Rs 4,550 crore. Prior to the public offering, TBO Tek successfully secured Rs 696.51 crore, and Aadhar Housing Finance attracted Rs 897.9 crore from anchor investors. With both IPOs generating substantial interest and trading at grey market premiums (GMP) of 58% and 22% respectively, investor confidence appears strong.
Spotlight on TBO Tek IPO
TBO Tek, a prominent global travel distribution platform, has opened its IPO today aiming to raise Rs 1,550.81 crore. The price range for the shares has been set between Rs 875 and Rs 920. Backed by General Atlantic, the IPO includes a fresh issue and an offer for sale, attracting substantial interest from global and domestic investors ahead of the official launch. As a key player in the travel distribution sector, TBO Tek stands out with a robust financial history and a cash reserve exceeding Rs 400 crore, showcasing a healthy balance sheet.
The Market Edge of TBO Tek
Addressing the fragmented global outbound travel market, TBO Tek uniquely positions itself as a centralized hub linking real-time supply with buyers. The global outbound travel market remains largely fragmented, with traditional travel agents covering a vast market without efficient access to global inventory. TBO TEK addresses this gap by serving as a centralized hub that efficiently connects real-time supply with buyers.
With a Price-to-Earnings (P/E) multiple of 48.6x based on projected FY24 earnings, the company's valuation might seem steep, yet it reflects its unrivaled position in the Indian market, making it a potentially lucrative option for long-term investment.
Aadhar Housing Finance IPO Insights
Simultaneously, Aadhar Housing Finance seeks to raise Rs 3,000 crore to bolster its capital for future loans targeting the low-income sector. With a price band of Rs 300 to Rs 315, this Mumbai-based enterprise is supported by the Blackstone Group and manages assets worth Rs 19,900 crore as of December 2023. Despite intense competition, the firm has not only expanded its loan book but maintained healthy asset quality and strong return ratios.
Valuation of Aadhar Housing Finance
With a P/E multiple of 18.4x against projected FY24 earnings, Aadhar Housing Finance's IPO is competitively priced. Backed by marquee promoters (Blackstone Group) and led by a professional team with a robust balance sheet, Aadhar Housing Finance is positioned to thrive in the affordable housing finance market. Given the firm’s promising growth trajectory and reasonable valuation, investors may consider subscribing to the IPO from a long-term perspective.
Get detailed insights on both IPOs here: IPO Corner | Liquide
TBO Tek, Aadhar Housing Finance IPO Subscription Status
On its first day of bidding, the IPO for TBO Tek was oversubscribed by 1.19 times. Subscription rates varied across categories with Retail Individual Investors (RIIs) at 3.35 times, Non-Institutional Investors (NIIs) at 2.1 times, and Qualified Institutional Buyers (QIBs) at 1%.
On the other hand, the Aadhar Housing Finance IPO saw a subscription of 0.47 times. Breakdowns for this public issue show subscriptions of 0.45 times for RIIs, 0.35 times for QIBs, and 0.63 times for NIIs.
Investment Decision: Which IPO Fits Your Portfolio?
Both TBO Tek and Aadhar Housing Finance present attractive opportunities for investors focused on long-term benefits. TBO Tek offers a unique proposition in the travel industry with a high growth potential, whereas Aadhar Housing Finance appeals with its strong market presence and reasonable valuation in the housing finance sector. Depending on your investment strategy and market outlook, either IPO could be a worthwhile addition to your portfolio.
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