The share price of TBO Tek, a global B2B travel distribution platform, jumped 9.4% in Monday’s intraday trade, September 08, to hit a nine-month high of ₹1,687 apiece after global brokerage firm Jefferies revised the target price higher to ₹1,800 from an earlier target of ₹1,625 apiece, while maintaining its ‘buy’ rating.
Today’s jump also led the stock to gain 28%, its biggest monthly gain since June 2024. The hike in target price follows the company’s recent acquisition of US-based Classic Vacations from a Phoenix-based investment firm for $125 million, which the brokerage believes will strengthen TBO Tek’s presence in the premium outbound market, especially in North America.
Jefferies believes this acquisition is a part of the company’s roll-up strategy in incubated markets and forecasts that it may also lead to an Earnings Per Share (EPS) increase of around 2–6% from FY25 to FY28.
On September 03, TBO announced the acquisition of Classic Vacations LLC, which it expects will bring together the power of TBO’s first-class technology platform and worldwide inventory with Classic Vacations’ vast network of luxury travel advisors and suppliers.
Earlier, domestic brokerage firm JM Financial said the acquisition is likely to help TBO expand its operations in North America, which is the largest outbound travel source market globally, and is in line with its strategic plan to expand its presence in global luxury travel, especially in developed markets.
Classic Vacations LLC is a premier luxury travel wholesaler with a strong B2B presence and deep relationships with more than 10,000 travel advisors across the US.
The business offers premium services across hotels, air travel, car rentals, bespoke experiences, and travel protection, catering to the complex requirements of affluent travellers. In CY24, Classic Vacations LLC reported revenue of USD 111 million and an operating EBITDA of USD 11.2 million.
Classic Vacations LLC will continue to operate as an independent brand. It will now get access to TBO’s global supplier inventory, creating significant opportunities for cross-border synergies and margin expansion over time. The acquisition is a significant step forward in TBO’s ambition to become a leading global travel distribution platform.
Stock trades 80% above the IPO price
The stock debuted on the Indian stock market in mid-May 2024, listing at ₹1,406 per share, compared to the IPO price of ₹920 per share. After its listing, the stock gained momentum over the next two months, rising 40% to reach a new all-time high of ₹2,001.
Following this peak, the stock experienced sustained selling pressure before regaining strength in May 2025 and continuing to maintain a higher level, leading it to trade 80% above its IPO price.
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