RateGain Travel Technologies IPO
RateGain Travel Technologies, the largest Software as a Service (SaaS) company in the hospitality and travel industry in India, has fixed a price band of Rs 405-425 per equity share for its maiden public offer. The issue will open for subscription on December 7 and will continue till December 9.
The anchor book of the company is expected to open for a day on December 6.
The public issue comprises a fresh issuance of shares worth Rs 375 crore and an offer for sale (OFS) of up to 2,26,05,530 equity shares by promoters and an investor.
Investor Wagner will offload 1.71 crore equity shares through OFS, while promoters Bhanu Chopra, Megha Chopra, and Usha Chopra will sell 54.91 lakh equity shares. The offer includes a reservation of shares worth Rs 5 crore for company's employees who will get those shares at a discount of Rs 40 per share to final issue price.
The public issue will fetch the company Rs 1,335.73 crore at the upper price band.
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The fresh issue proceeds will be utilised for repaying of debts availed by subsidiary RateGain UK; payment of deferred consideration for acquisition of DHISCO; and strategic investments, acquisitions and inorganic growth.
The company will also make use of issue proceeds for investment in technology innovation, artificial intelligence and other organic growth initiatives; purchase of certain capital equipment for data center; and general corporate purposes.
Investors can bid for a minimum of 35 equity shares and in multiples of 35 shares thereafter. Retail investors can invest a minimum of Rs 14,875 for one lot, and their maximum investment would be Rs 1,93,375 for 13 lots.
Up to 75 percent of the offer size is reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors.
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RateGain offers travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents (OTAs), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries. It is one of the largest aggregators of data points in the world for the hospitality and travel industry.
Third party travel and hospitality technology is estimated to be a $5.91 billion market in 2021, growing to an estimated $11.47 billion in 2025 at a CAGR of 18 percent.
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The company posted a consolidated loss of Rs 28.57 crore in financial year FY21, against loss of Rs 20.1 crore in previous year. Revenue in the same year declined to Rs 250.79 crore from Rs 398.71 crore.
In the five-month period ended August 2021, the loss stood at Rs 8.33 crore against loss of Rs 7.85 crore in the corresponding period last fiscal. However, revenue from operations increased to Rs 125.27 crore during the same period, from Rs 97.89 crore YoY.
RateGain will finalise the IPO share allotment by December 14. Unsuccessful investors will get the money back in their bank accounts by December 15 and equity shares will get credited to demat accounts of eligible investors by December 16.
It will make a debut on the BSE and NSE, on December 17.
Promoters including Bhanu Chopra and Megha Chopra have 67.29 percent shareholding in the company and the remaining shares are held by public shareholders including Wagner and Avataar.
Kotak Mahindra Capital Company, IIFL Securities, and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue.