1 min read.Updated: 09 Dec 2021, 12:53 PM ISTLivemint
RateGain Travel IPO has a fresh issue of up to ₹375 crore and an offer for sale of up to 2,26,05,530 equity shares
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The initial public offering (IPO) of Rategain Travel Technologies Limited has been fully subscribed on last day of the bidding. The Retail Individual Investors (RIIs) category is overbooked 5.24 times, while non-institutional investors bid 1.44 times, taking the overall subscription figure to 1.36x as of 12:45 pm, BSE data showed.
The three-day issue opened for public subscription on December 7 and will conclude on December 9. The software-as-a-service (SaaS) company has fixed a price band of ₹405-425 per share.
The initial share sale has a fresh issue of up to ₹375 crore and an offer for sale of up to 2,26,05,530 equity shares. The company said it has raised ₹599 crore from anchor investors ahead of its share sale. The travel and hospitality technology services provider's offer is expected to fetch ₹1,335.7 crore at the upper end of the price band.
According to market observers, RateGain shares are commanding ₹60 premium (GMP) in the grey market today. The company plans to list its shares on 17 December on the leading stock exchanges NSE and BSE.
RateGain is among the leading distribution technology companies globally and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India.
Proceeds from the fresh issue will be used for payment of debt availed by RateGain UK, one of the subsidiaries, from Silicon Valley Bank; payment of deferred consideration for the acquisition of DHISCO and strategic investments, acquisitions, and inorganic growth.
In view of the high growth potential, unique business propositions with minimal competition and valuation comfort, Reliance Securities has recommended Subscribe with a long-term perspective.
Another brokerage Prabhudas Lilladher has also recommended to subscribe for long term gains as it believes the company is well positioned to capture wallet share given its comprehensive, inter-operable, innovative industry specific solutions and marquee client base.
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