Why TBO Tek shares rallied 12% today
The stock rose 12.03 per cent to hit a high of Rs 1,550 on BSE, reducing its year-to-date losses to 12 per cent. The scrip has recovered smartly, rising 29 per cent in the past six months.
- Sep 3, 2025,
- Updated Sep 3, 2025 9:35 AM IST
Shares of TBO Tek rallied 12 per cent in Wednesday’s trade after the Gurugram-headquartered travel distribution platform announced plans to acquire US-based Classic Vacations from Phoenix’s Najafi Companies for up to $125 million.
The stock rose 12.03 per cent to hit a high of Rs 1,550 on BSE, reducing its year-to-date losses to 12 per cent. The scrip has recovered smartly, rising 29 per cent in the past six months.
Classic Vacations, a luxury travel services provider, reported $111 million revenue and $11.2 million operating EBITDA in 2024. The acquisition expands TBO’s reach in the premium outbound travel segment by pairing its technology and global inventory with Classic’s network of more than 10,000 travel advisors and suppliers.
TBO said Classic will continue to operate as an independent brand, while leveraging TBO’s distribution and technology to accelerate growth. “This acquisition supports our strategy of both organic and inorganic growth, and we remain open to similar alliances,” said co-founders Gaurav Bhatnagar and Ankush Nijhawan.
Classic Vacations CEO Melissa Krueger said the deal enhances its positioning in the luxury travel segment and gives its advisor community access to global reach and technology tools. Najafi Companies, which acquired Classic from Expedia Group in 2021, called the sale a natural next step for its portfolio company.
Moelis & Company acted as exclusive financial adviser and Ballard Spahr as legal counsel to Classic, while Cooley LLP and PwC advised TBO.
The announcement came days after TBO’s Q1 FY26 update, where management highlighted early signs of growth momentum despite a weak travel market. Sales from new agents were up 132% year-on-year, and the Hotels & Ancillaries segment contributed 20% of India GTV.
As the company nears the end of a relentless hiring spree (to be completed by Q3 FY26), it is on track for a 22-23 per cent revenue CAGR over 2-3 years with a steady margin expansion from FY27. "We cut our FY27e earnings 1.5 per cent, introduce FY28e and retain a Buy rating with a higher target price of Rs 1,725, 46 times September 2027 EPS," Anand Rathi said last month.
Founded in 2006, TBO connects over 159,000 travel buyers with more than 1 million suppliers across 100+ countries, using technology to streamline global travel distribution.
Shares of TBO Tek rallied 12 per cent in Wednesday’s trade after the Gurugram-headquartered travel distribution platform announced plans to acquire US-based Classic Vacations from Phoenix’s Najafi Companies for up to $125 million.
The stock rose 12.03 per cent to hit a high of Rs 1,550 on BSE, reducing its year-to-date losses to 12 per cent. The scrip has recovered smartly, rising 29 per cent in the past six months.
Classic Vacations, a luxury travel services provider, reported $111 million revenue and $11.2 million operating EBITDA in 2024. The acquisition expands TBO’s reach in the premium outbound travel segment by pairing its technology and global inventory with Classic’s network of more than 10,000 travel advisors and suppliers.
TBO said Classic will continue to operate as an independent brand, while leveraging TBO’s distribution and technology to accelerate growth. “This acquisition supports our strategy of both organic and inorganic growth, and we remain open to similar alliances,” said co-founders Gaurav Bhatnagar and Ankush Nijhawan.
Classic Vacations CEO Melissa Krueger said the deal enhances its positioning in the luxury travel segment and gives its advisor community access to global reach and technology tools. Najafi Companies, which acquired Classic from Expedia Group in 2021, called the sale a natural next step for its portfolio company.
Moelis & Company acted as exclusive financial adviser and Ballard Spahr as legal counsel to Classic, while Cooley LLP and PwC advised TBO.
The announcement came days after TBO’s Q1 FY26 update, where management highlighted early signs of growth momentum despite a weak travel market. Sales from new agents were up 132% year-on-year, and the Hotels & Ancillaries segment contributed 20% of India GTV.
As the company nears the end of a relentless hiring spree (to be completed by Q3 FY26), it is on track for a 22-23 per cent revenue CAGR over 2-3 years with a steady margin expansion from FY27. "We cut our FY27e earnings 1.5 per cent, introduce FY28e and retain a Buy rating with a higher target price of Rs 1,725, 46 times September 2027 EPS," Anand Rathi said last month.
Founded in 2006, TBO connects over 159,000 travel buyers with more than 1 million suppliers across 100+ countries, using technology to streamline global travel distribution.