The public offer of RateGain Travel Technologies has garnered bids for 1.29 crore equity shares against IPO size 1.73 crore equity shares, subscribed 75 percent on December 8, the second day of bidding.
Retail investors continued to provide strong support to the issue, putting bids 3.98 times the portion set aside for them, while employees bought 72 percent of the shares reserved for them.
The allotted quota of non-institutional investors was booked 8 percent, while qualified institutional investors have not started putting in bids for the issue.
The public issue opened for subscription on December 7, seeing 41 percent subscription on the first day.
RateGain Travel Technologies' public issue comprises a fresh issue of Rs 375 crore and an offer for sale of 2.26 crore equity shares. The offer will fetch the company nearly Rs 1,336 crore at the upper end of the price band of Rs 405-425 per equity share. The company garnered Rs 599 crore from anchor investors on December 6.
Click Here To Read The Moneycontrol's Exclusive Research Note on RateGain IPO
"The company with its marquee global customers and long-term relationships has an innovative artificial intelligence-driven industry-relevant software-as-a-service solutions. Its diverse and comprehensive portfolio of revenue maximisation and business critical solutions with strong financial performance has a track record of successful acceleration post acquisitions," said Hem Securities.
The brokerage likes the business model of company despite losses in FY20 and FY21. "Going forward, if the situation related to the Omicron variant remains favourable, we think the company will show a strong performance."
Hem Securities has recommended "subscribe" on the issue for limited listing gain for risk-takers, and said it looks like a good bet for long term investment.
Also read - RateGain Travel Technologies IPO: Should you subscribe?
RateGain has a global and diverse customer base with whom the company has long-standing relationships. As of September, it had 1,462 customers including eight Global Fortune 500 companies, comprising both travel suppliers and travel intermediaries including airlines, hotels, cruise lines, car rental companies, online travel agents, tour operators and wholesalers.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Also read - Rategain Travel Technologies IPO: 10 key things to know before subscribing public issue
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
