TBO Tek Shares Rally 13% To Become Top Gainer In Nifty Smallcap 250 After THIS Update

Shares of TBO Tek Ltd rallied as much as 13% during early trade on Wednesday on the back of its acquisition of US-based company Classic Vacations for $125 million. TBO Tek stock reached an intraday high of Rs 1,597 compared to the previous close of Rs 1,504.

Over a 12-month period, though, the stock has plummeted 14.5%. TBO Tek's sharp rally comes after the company acquired Classic Vacations from The Najafi Companies, the company said in an exchange filing.

Classic Vacations is a premium B2B & B2C luxury travel company based in the United States, with more than 10,000 travel advisors in the country.

In FY25, the company raked in a revenue of $111 million, with an operating Ebitda of $11.2 million.

In order to understand what the acquisition could mean for TBO Tek, it is important to note that the company itself is involved in the business of travel distribution. They bridge travel agents (mainly independent and small agencies) and enterprises with a fragmented, global supplier base (hotels, airlines, ancillary service providers).

TBO mainly provides a digital platform for booking flights, hotels, experiences, cruises, rail, religious travel, and more. TBO Tek's acquisition of Classic Vacations is a strategic move aimed at improving the company's presence in the North American market.

Given Classic Vacations' strong travel advisor base, the company is set to elevate its premium outbound travel market services across the global stage.

“We’re excited for this next phase in our company’s journey – TBO’s tech-centric solutions are geared fully toward our travel advisor community,” said Melissa Krueger, CEO of Classic Vacations.