RateGain Travel Technologies' initial public offering (IPO) to raise Rs 1,336 crore will open for subscription on Tuesday, December 7. The IPO of RateGain Travel Tech, a software as a service (SaaS) company in the hospitality and travel industry, is a combination of fresh issuance and an offer for sale (OFS) of shares. The RateGain Travel IPO will close for subscription on Thursday, December 9.
On Monday, RateGain Travel Tech raised Rs 598.8 crore from anchor investors at Rs 425 per share. GIC, Nomura India Investment Fund, ICICI Prudential, Sundaram MF and Aditya Birla Sunlife were among its prominent investors.
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Here are key things to know about the RateGain Travel Tech IPO:
Important dates: The subscription window for the Rate Gain Travel Tech IPO will open on December 7 and close on December 9. Shares are likely to be listed on stock exchanges BSE and NSE on December 17.
Price band: RateGain shares will be available for bidding in a price band of Rs 405-425 in multiples of 35. At the upper end of the price band, one lot of RateGain shares will cost Rs 14,875.
Investor categories: Of the total issue, 75 percent is reserved for qualified institutional buyers, 10 percent for retail investors and 15 percent for non-institutional investors.
OFS: The IPO comprises fresh issuance of shares worth Rs 375 crore, and an OFS of shares worth Rs 960.7 crore by promoters and existing shareholders. Wagner, one of the big shareholders, will be selling shares worth around Rs 727 crore. The company is likely to have a market capitalisation of Rs 4,341.4-4537.2 crore at the issue price.
Issue objective: The company aims to use the proceeds of the IPO to repay or prepay debt of Rs 86.4 crore of its subsidiary, RateGain UK, to pay deferred consideration of the acquisition of DHISCO, for strategic investments, acquisitions and inorganic growth, investment in technology innovation, AI and other organic growth initiatives, and for the purchase of certain capital equipment for its data centre.
Financials
| Rs cr | FY19 | FY20 | FY21 |
| Rev | 261.5 | 398.7 | 250.79 |
| YOY | 52.40% | -37.10% | |
| EBITDA | 21.6 | -25.1 | 6.17 |
| EBITDA% | 0.0826 | N/A | 0.024602 |
| PAT/Loss | 11 | -20.1 | -28.57 |
The company has been making losses to the impact of the pandemic on the travel and tourism sector.
Company profile
RateGain Travel Technologies is a SaaS company in the hospitality and travel industry with around 1,460 customers, as of September 30 across the hotel, airline and online travel agent categories. Hotels are the biggest customer group for the company with more than 1,220 customers (about 85 percent of its clients). RateGain Travel offers SAAS products across distribution, marketing tech and data as a service (DAAS) areas.
First Published: Dec 6, 2021 2:59 PM IST
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