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RateGain Travel Technologies Ltd continued to draw muted response on Wednesday, the second day of its three-day initial public offering.

As of 5pm, the IPO was subscribed 0.75 times. Overall, it received 12.93 million bids against the offer of 17.35 million shares, according to stock exchange data.

Retail investors placed bids for 3.98 times the shares reserved for them. Non-institutional investors bid for 0.08 times their quota, while institutional investors are yet to place orders for the issue.

RateGain is among the leading distribution technology companies globally and are the largest software-as-a-service company in the hospitality and travel industry in India.

The company’s profitability has not been encouraging over the years, due to the acquisition of loss-making entities and higher depreciation (impairment of goodwill). 

Due to the pandemic, its revenue declined to Rs250 crore in FY21, from a high of 400 crore in FY20, while adjusted EBITDA margin improved to 9.4% in FY21, from 8% in FY20.

Meanwhile, Shriram Properties Ltd retail portion got bumper demand on the first day of its IPO. Overall, the IPO was subscribed 0.93 times.

Retail investors, whose investments cannot exceed the maximum cap of 2 lakh in an IPO, applied for 5.07 times the shares on offer.

The non-institutional category comprising high net worth individuals drew just 0.04 times the shares reserved for it. Institutional investors category is yet to apply to the issue, stock exchange data showed.

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