RateGain Travel Technologies IPO: The Initial Public Offering (IPO) of RateGain Travel Technologies Limited has received bids for 97.54 lakh equity shares against the size of 1.73 crore equity shares until 1:15 pm on December 8, Wednesday. This means that the RateGain IPO was subscribed around 56 per cent during its second day of bidding, mainly on the support of the retail investors category. The RateGain IPO opened a day back and will lose on December 9, offering three days to investors for bidding. The company, which has floated its maiden public issue, offers travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents, meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries.
The software-as-a-service (SaaS) company plans to raise Rs 1,335.7 crore at the upper price band of the offer. The price of the RateGain Travel IPO has been fixed at Rs 405 to Rs 425 per equity share, with a face value of Rs 1 each.
RateGain Travel Technologies IPO Subscription Status:
The RateGain IPO was subscribed 56 per cent as of 1:15 pm on Day 2, largely on support of retail investors. The retail investors subscribed 3.11 times of the portion set aside for them. Employees booked 0.41 times the shares reserved for them while non institutional investors subscribed 0.05 times the portion set aside for them. Qualified institutional buyers category was not subscribed at the time of writing this article.
The issue was subscribed 41 per cent on its opening day on December 7, Tuesday. This too, happened on the backing of retail investors.
RateGain IPO GMP Today
The unlisted shares of RateGain Travel Technologies were fetching a price of Rs 100 in the grey market, according to IPO Watch. The grey market premium of RateGain Travel Technologies was Rs 525 on December 8, over 23 per cent up from the higher end of the price band.
RateGain Travel IPO Offer Details
RateGain Travel Technologies IPO includes a fresh issuance of shares worth Rs 375 crore, and an offer for sale of up to 2,26,05,530 equity shares by promoters and investors. Promoters Bhanu Chopra, Megha Chopra, and Usha Chopra will offload 54.91 lakh equity shares while investor Wagner will liquidate 1.71 crore equity shares through OFS.
RateGain Travel Technologies IPO Key Strengths
RateGain Travel Technologies Limited has a global and diverse customer base with whom it has a long-standing relationships. As of September 30, 2021,
the company’s customer base of 1,462 customers including eight Global Fortune 500 companies comprised both travel suppliers and travel intermediaries. RateGain Travel Technologies has maintained focus on capital efficiency and grown without incurring material indebtedness. The company’s conservative approach of operating with low debt has enabled it to remain in a good position during the COVID- 19 crisis.
RateGain IPO: Should You Subscribe?
Choice Broking: Company is bringing the issue at price band of Rs 405-425 per
share at p/s multiple of 13x on FY22 basis. Company with its marquee global customers and long-term relationships has innovative AI driven industry relevant SaaS solutions. Also, company’s diverse and comprehensive portfolio
of revenue maximization and business critical solutions with strong financial performance has track record of successful acceleration post acquisitions. We like the business model of company. Although company has made losses in FY20 & FY21 but going forward if situation regarding omicron variant will
remain favourable then we think the company will show strong performance.
Hence we recommend “Subscribe” on issue for limited listing gain to risk takers while issue looks good bet for long term investment.
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