TBO Tek Limited has formally submitted its Monitoring Agency Report, prepared by CARE Ratings Limited, detailing the utilization of Initial Public Offer (IPO) proceeds for the quarter ending December 31, 2025. The report confirms that all IPO proceeds have been utilized appropriately for the objectives outlined in the Offer Document. The total utilization for the quarter reached ₹159.27 crore, bringing the cumulative utilization to ₹374.06 crore against the gross proceeds of ₹400.00 crore.
Monitoring Agency Report Submission Overview
TBO Tek Limited has officially submitted the Monitoring Agency Report concerning the utilization of its Initial Public Offer (IPO) proceeds for the quarter ended December 31, 2025. This submission was made to the stock exchanges pursuant to applicable listing regulations.
The report, prepared by the Monitoring Agency (MA), CARE Ratings Limited, and duly reviewed by the Audit Committee and Board of Directors on February 11, 2026, confirms that the utilization of funds remains in line with the disclosed objects.
Utilization Status as of Q3 FY26
The total gross proceeds raised through the IPO amounted to ₹400.00 crore. As of the end of the quarter, the total cumulative utilization stood at ₹374.06 crore, resulting in an unutilized balance of ₹25.94 crore.
Progress on Growth and Strengthening Platform (Total Allocation: ₹260.00 Crore)
For the category covering platform growth, the total utilization reached ₹135.00 crore, with ₹8.86 crore utilized during the quarter. Key utilization details include:
- ₹5.92 crore utilized for payroll expenses of platform employees.
- ₹1.93 crore utilized for hosting and bandwidth charges.
- ₹1.01 crore utilized for software license fees.
For investment in the Material Subsidiary (Tek Travels DMCC), a total of ₹79.76 crore has been utilized out of the allocated ₹100.00 crore. During the quarter, ₹28.90 crore was spent on marketing/promotional activities (₹7.34 crore) and hiring sales/contracting personnel (₹21.56 crore).
For investment in sales, marketing, and infrastructure in India (Allocation: ₹25.00 crore), utilization reached ₹20.37 crore, with ₹10.85 crore utilized during the quarter toward sales and marketing expenses.
Unidentified Inorganic Acquisitions and General Corporate Purposes (Total Allocation: ₹121.06 Crore)
The acquisition of Classic Vacations LLC utilized the full allocated amount:
- Unidentified Inorganic Acquisitions (Allocation: ₹40.00 Crore): The entire ₹40.00 crore has been utilized towards this acquisition.
- General Corporate Purposes (Allocation: ₹81.06 Crore): Utilization reached ₹81.04 crore, with ₹70.66 crore partly funding the acquisition of Classic Vacations LLC and the remaining ₹0.66 crore covering rental and administrative expenses.
Issue Related Expenses
The utilization for Issue related expenses (Allocation: ₹18.94 crore) stood at ₹17.89 crore, with no utilization recorded during the current quarter (Q3 FY26).
Material Contingency Disclosure
The Monitoring Agency noted a significant contingency related to potential non-compliances under the Foreign Exchange Management Act (FEMA). The Reserve Bank of India (RBI) reportedly rejected the company’s application for post-facto approval concerning an alleged violation amounting to approximately ₹49.37 crore. The matter is currently sub-judice, following adjudication proceedings initiated on September 11, 2025. The company is actively contesting the matter with its legal counsel.
Deployment of Unutilized Proceeds
The unutilized balance of ₹25.94 crore has been deployed primarily in fixed deposits with Standard Chartered Bank, earning an annualized return of 3.38%. The total market value of these investments as of the quarter end was ₹14.46 crore.
Delay in Object Implementation
Implementation for Investment in sales, marketing and infrastructure in India is reported as Ongoing against a planned completion of FY26. The delay is attributed to the company prudently utilizing a lower amount, in line with procedural ease of fund transfer to the subsidiary, Tek Travels DMCC. The company plans to utilize the remaining proceeds in FY26.
Source: BSE
