Rategain Travel Technologies IPO - Subscription Day 1
The Rs.1,335.74 crore IPO of Rategain Travel Technologies, consisting of a fresh issue of Rs.375 crore and an offer for sale (OFS) of Rs.960.74 crore, saw tepid response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Rategain Travel Technologies IPO was subscribed 0.41X overall, with strong demand coming only from the retail segment and little interest seen in the QIB or in the HNI counters. The issue will close for subscription on Thursday, 09th December.
As of close of 07th December, out of the 173.51 lakh shares on offer in the IPO, Rategain Travel Technologies saw bids for 71.88 lakh shares. This implies an overall subscription of 0.41X. The granular break-up of subscriptions was dominated by the retail investors.
The QIB response and the HNI / NII response was virtually absent on the first day of the IPO. Normally, it is only on the last day of bidding, the NII bids and the QIB bids build up substantial momentum. First day response may not be too relevant for them.
Rategain Travel Technologies IPO Subscription Day-1
|
Category |
Subscription Status |
|
Qualified Institutional Buyers (QIB) |
0.00 Times |
|
Non Institutional Investors (NII) |
0.04 Times |
|
Retail Individuals |
2.23 Times |
|
Employees |
0.34 Times |
|
Overall |
0.41 times |
QIB Portion
Let us first talk about the pre-IPO anchor placement. On 06th December, Rategain Travel Technologies did an anchor placement of 1,40,90,136 shares at the upper end of the price band of Rs.425 to 34 anchor investors raising Rs.598.83 crore, representing 44.83% of the total issue size.
Check - Rategain Travel Technologies Ltd - Information Note
The list of QIB anchors included a number of marquee international names like Government of Singapore, Monetary Authority of Singapore, Nomura Fund, Ashoka India Fund, Goldman Sachs, Pinebridge and Tantallon. Domestic investors in the anchor placement included ICICI Pru MF, Axis Mutual Fund, Aditya Birla Sun Life MF, Sundaram Mutual Fund, SBI Life Insurance, ICICI Pru Life Insurance and HSBC India Mutual Fund.
The QIB portion (net of anchor allocation as explained above) has a quota of 93.93 lakh shares of which it has got NIL bids at the close of Day-1, implying NIL subscription for QIBs at the close of Day-1. However, QIB bids typically get bunched on the last day but the solid response in the anchor placement shows that there is institutional appetite for the IPO.
HNI / NII Portion
The HNI portion got subscribed 0.04X (getting applications for 1.76 lakh shares against the quota of 46.97 lakh shares). This is a relatively tepid response at the close of Day-1 but this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.
Retail Individuals
The retail portion was subscribed a healthier 2.23X at the close of Day-1, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is just 10% in this IPO. For retail investors; out of the 31.31 lakh shares on offer, valid bids were received for 69.68 lakh shares, which included bids for 52.81 lakh shares at the cut-off price.
The IPO is priced in the band of (Rs.405-Rs.425) and will close for subscription on 09th December 2021.
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