Rategain Travel Technologies IPO - 7 Things to Know

Rategain Travel Technologies is opening its Rs.1,335.74 crore IPO on 07th December and it will be a mix of a fresh issue and an offer for sale. Rategain is essentially a B2B player which provides SAAS (software as a service) related solutions for the travel and leisure industry. Here is the gist of the proposed IPO.
 

Seven Interesting Facts to Know About Rategain Travel Technologies IPO

1) Rategain offers travel and hospitality services to the entire leisure value chain including hotels, airlines, online travel agents, car rentals as well as cruise and ferry packages. It basically follows the SAAS (software as a service) model for its B2B customers.

2) The Rategain Travel Technologies IPO Rs.1,335.74 crore will comprise of a fresh issue of Rs.375 crore and an offer for sale of Rs.960.74 crore.

Promoters and early investors will offer 2,26,05,530 shares as part of the OFS and 88,23,530 shares as part of the fresh issue.

The IPO has been priced in the band of Rs.405 to Rs.425 and issue size assumptions are on upper price band.

3) The IPO will open for subscription on 07-Dec and close on 09-Dec. The basis of allotments will be finalized on 14-Dec and refunds will be initiated on 15-Dec.

The shares are expected to be credited to the demat account of eligible shareholders on 16-Dec and the stock will be listed on the stock exchanges on 17-Dec. 

4) The fresh issue portion of Rs.375 crore will be used for organic and inorganic growth of the business. In addition, some of the funds will also be utilized for repaying the debt availed by Rategain UK.

The company also plans to invest in its data centers as well as in technological upgradation, including fine tuning artificial intelligence as a tool.

5) The company made a small profit in FY19 but has made losses in FY20 and FY21. On a YoY basis, the revenues fell sharply in FY21 by 42.4% to Rs.264 crore due to the lag impact of COVID-19.

However, the company does expect traction from the revival in tourism and leisure as travel and spending get back to pre-COVID levels. 

6) Rategain brings some core strengths to the table. It offers complete suite of solutions to the travel and leisure industry and the SAAS approach enables rapid scaling up.

The SAAS solution is also driven by artificial intelligence making it more predictive in nature. Rategain boasts of a strong base of 1,434 corporate clients including marquee names.

7) The issue is being lead managed by IIFL Securities, Kotak Mahindra Capital and Nomura Financial Advisory. KFintech (formerly Karvy Computershare) will be the registrars to the initial public offer.

IPO investors can apply in lots of 35 shares while retail category investors can apply for a maximum of 13 lots consisting of 455 shares.

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