RateGain Travel raises ₹600 Crore via QIP, Stock gains 22% in a month

RateGain Travel Technologies, a global provider of SaaS solutions in the hospitality and travel industry, jumped nearly 1% on November 21 after the company successfully raised ₹600 crore through QIP, Qualified Institutions Placement. It aims to utilize these funds for strategic investments, acquisitions, and inorganic growth, with a focus on building an AI-powered integrated tech stack for the industry. The company closed the QIP issue, issuing 93.31 lakh equity shares at a price of ₹643 per share.

Prominent institutional investors, including Pinebridge Global Funds, Troo Capital, ICICI Prudential MF, Kotak Mahindra Life Insurance, Founders Collective Fund, Sundaram MF, Bajaj Allianz Life Insurance, Societe Generale - ODI, and Morgan Stanley Asia, participated in the QIP.

RateGain's founder and Managing Director, Bhanu Chopra, emphasized the rapidly changing technology landscape within the travel industry. The raised funds are expected to help the company consolidate its position and provide customers with cutting-edge AI-led products for revenue maximization.

Financial Performance

For Q2FY24, RateGain reported robust financial results, with net sales reaching ₹234.72 crore, marking an 88.37% increase from ₹124.61 crore in September 2022. Net profit grew by 131.74% year-on-year to ₹30.04 crore, while earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹50.07 crore, reflecting a 105.04% increase.

Stock Performance

RateGain Travel Technologies went public in December 2021, initially listing below its IPO price of ₹425 per share. Despite the initial challenges, the stock has demonstrated resilience, reaching a recent 52-week high of ₹733 and gaining nearly 150% in 2023. In the last month alone, RateGain's stock has surged by 22%. Over the span of six months, the stock is up 87%.

In a closer look at RateGain's stock behavior, it's clear that it's been on an upward trend in the daily time frame. After hitting a high of ₹503 in January 2022 and reaching a low of ₹238 in September 2022, the stock bounced back and has been consistently moving up, currently trading at ₹724.

Analyzing the daily chart, the Relative Strength Index (RSI) stands at 68. This essentially means the stock is in a balanced position – not too overbought or oversold. Investors might see this as a sign of stability, indicating the stock's value is steadily climbing without any extreme fluctuations. It's a positive signal for those following RateGain's performance in the market.

Utilization of Funds

The company plans to channel the funds towards strategic investments, acquisitions, and the development of an AI-powered integrated tech stack. This initiative is designed to empower RateGain's customers in acquiring, retaining, and engaging guests, as well as expanding their wallet share.

Final Words

RateGain Travel Technologies' successful QIP and its robust financial performance highlight the company's commitment to innovation and growth in the competitive hospitality and travel sector. As it continues to evolve in the dynamic technology landscape, RateGain is poised to play a significant role in shaping the future of the industry.