Rategain Travel Technologies Ltd IPO
IPO Subscription Details
- Open Date 07 Dec
- Close Date 09 Dec
- Lot Size 35 Shares
- IPO Size ₹ 1,335.74 Cr
- IPO Price Range ₹ 405-₹425
- Min Investment ₹ 14,175
- Listing Exchange NSE,BSE
- Basis of Allotment 14 Dec
- Refunds 15 Dec
- Credit to Demat Account 16 Dec
- Listing Date 17 Dec
Rategain Travel Technologies Ltd IPO Subscription Status
| Category | Subscription Status |
| Qualified Institutional (QIB) | 8.42 Times |
| Non-Institutional (NII) | 42.08 Times |
| Retail Individual | 8.08 Times |
| Employee | 1.37 Times |
| Total | 17.41 Times |
Rategain Travel Technologies IPO Subscription Details (Day by Day)
| Date | QIB | NII | Retail | Employee | Total |
| December 07, 2021 17:00 | 0.00x | 0.04x | 2.23x | 0.34x | 0.41x |
| December 08, 2021 17:00 | 0.00x | 0.08x | 3.98x | 0.72x | 0.75x |
| December 09, 2021 17:00 | 8.42x | 42.04x | 8.08x | 1.37x | 17.41x |
IPO Synopsis
A travel and hospitality technology services provider, RateGain, filed its DRHP with SEBI on August 16, 2021. The issue is to open for subscription between December 7 and December 9. The issue is expected to be listed on December 17, 2021. The IPO price has been set at a range of Rs.405-Rs.425 per share with the minimum investment (1 lot= 35 shares) standing at Rs.14,875.
The issue consists of a fresh issue worth Rs.375 crore and an offer for sale up to 22,605,530 equity shares. In the OFS, Wagner Ltd, which holds 22.8% stake in the company, will offload up to 1.71 crore equity shares, the founder- Bhanu Chopra plans to offload 40.44 lakh shares along with 12.94 lakh shares by Megha Chopra and 1.52 lakh shares offloaded by Usha Chopra. The last valuation of the company in 2015 stood at $133 million. The book running lead managers to the issue are IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd and NOMURA Financial Advisory and Securities Pvt Ltd.
Objectives of the issue:
1. Rs.86.432 crore as prepayment and repayment of RateGains UK’s debt (a subsidiary) from Silicon Valley Bank
2. Rs.26.235 crore as payment of deferred consideration for the acquisition of DHISCO
3. Rs.80 crore to be kept aside for strategic investments
4. Rs.50 crore is to be kept for further investment in artificial intelligence and technological innovation
5. Rs.43.33 crore for the purchase of capital equipment for the data center.
About Rategain Travel Technologies Ltd
Founded in 2004, as a SaaS (Software As A Service) startup, RateGain now sells software for the hospitality and travel industries which help them in revenue management decision support, seamless electronic distribution and brand engagement. It offers a suite of products that will help different hotels and travel agencies offer their customers personalized experiences and thus help maximize their margins. The company serves a fast growing market. Third party travel and hospitality industry is currently estimated to be valued around $5.91 billion in 2021. It is expected to grow at a CAGR of 18% till 2025, reaching a value of $11.47 billion.
RateGain has an enviable customer base of 1,434 customers all across the hospitality, online travel agency and hotel sectors, spanning across 110 countries. As of June 30 2021, the company’s customer base includes eight global Fortune 500 companies, 1,186 mid sized hotel chains, 104 travel partners that include airlines and cruises and 144 distribution partners such as GroupOn and Sabre GLBL Inc.
3 strategic business units of the company:
1. Data as a Service (DaaS) - This helps the customers gain access to pricing and data along with information on current trends, opportunities and market development analytics. A few segments in the travel industry have always used a seasonal and off season pricing mechanism. But through DaaS, the company can offer them a dynamic pricing model, better suited to their needs.
2. Distribution - The company provides data regarding availability, rates, inventory and helps provide a connection between the accommodation providers and their demand partners.
3. MarTech (Marketing Technology) - The company manages the social media handles of many luxury travel suppliers, thus allowing them to be more active on social media and have a 24*7 social media presence along with help in managing promotional activities.
Ahead of the IPO, RateGain has been able to acquire three companies- DHISCO and BCV (US based) and Myhotelshop (German).
Rategain Travel Technologies Ltd Financial Status
|
PARTICULARS (In Rs. crore) |
FY21 |
FY20 |
FY19 |
|
Revenue |
250.7 |
398.7 |
261.5 |
|
PAT |
(27.8) |
(12.8) |
11.5 |
|
EPS |
(3.09) |
(2.27) |
1.24 |
Due to the impact of Covid on the travel industry, the revenue of RateGain fell from Rs.398.7 crore in FY20 to Rs.250.7 crore in FY21. A loss of Rs.27.8 crore was reported, which shows an increase from the loss of Rs.12.8 crore in FY20. FY19 was a good year for the company and a profit of Rs.11.5 crore with a revenue of Rs.261.5 crore was reported.
|
PARTICULARS (In Rs. crore) |
FY21 |
FY20 |
FY19 |
|
Equity Share Capital |
0.655 |
0.655 |
0.655 |
|
Total borrowings |
111.79 |
115.80 |
24.41 |
|
Total Assets |
439.8 |
397.1 |
284.90 |
Key points for Rategain travel technologies
IPO Key Points
-
Strengths
1. The company has a diverse customer base and a good relationship with them. The revenue from ten major customer groups in FY19, FY20 and FY21 was Rs.110.27 crore, Rs.176.6 crore and Rs.92.81 crore, respectively
2. A very diverse and comprehensive portfolio which focuses on revenue maximization
3. The management team is very experienced and are experts in their fields. The company also focuses on employee welfare -
Risks
1. Almost all of the revenue generated is obtained from the hospitality and travel industry. If there are any more adverse impacts of the pandemic on these industries, like a third wave, then this may adversely affect the company’s financials and business.
2. The business wholly depends on the clients renewing their contracts. If for some reason the clients do not renew their contracts, it may affect the long term business operations of the company.
3. Since SaaS is a new and evolving market, if there is decline in the growth or if the growth is not according to the estimate, it may prove to be a hindrance in business activities.
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IPO FAQs
What is the issue size of the RateGain Travel Technologies IPO?
The issue size is a fresh issue of Rs.375 crore and OFS of up to 22.61 million shares.
What is the maximum number of shares of the RateGain Travel Technologies IPO that I can apply for?
The maximum is 13 lots- 455 shares, worth Rs.1,93,375.
How many shares will I get in 1 lot?
1 lot of RateGain Travel Technologies IPO has 35 shares
When will the share be listed on the stock exchanges?
On December 17 th, 2021, RateGain Travel Technologies will be listed on the stock exchanges.
Where is RateGain Travel Technologies IPO going to be listed?
NSE and BSE both.
What is the price of each share going to be?
The price range set for each share of RateGain Travel Technologies Ltd, is Rs.405-Rs.425 per share.
Who is the registrar to the offer?
K Fin Technologies Pvt Ltd is the registrar to the RateGain Travel Technologies IPO.
What is the pre issue shareholding of the promoters of RateGain Travel Technologies Ltd?
The pre issue shareholding will stand at 67.29%.
How do I check the allotment status?
Way to check 1- First you need to go to the registrar’s site- K Fin Technologies Pvt Ltd and then visit the IPO allotment page. From the drop down menu, select RateGain Travel Technologies Ltd. Then, enter your PAN card details and select the application type- ASBA or Non-ASBA and enter the required details. After this the status is displayed on the screen.
Way to check 2- Visit the BSE application website page, select equity and then select RateGain Travel Technologies Ltd from the drop down menu. After entering your PAN card details and application number, the status is displayed on the screen.
What is the minimum investment required?
The minimum investment required to apply for the RateGain Travel Technologies IPO is Rs.14,875.
It is the upper range of the IPO price i.e. Rs.425*35 shares (1 lot). Minimum investment in an IPO is the amount of money that you need to invest in order to receive 1 lot of shares of the IPO.
The number of shares in 1 lot varies from IPO to IPO but normally, the minimum investment value is calculated by multiplying the number of shares in 1 lot with the upper price range of the IPO price per share.
Contact Details of Rategain Travel Technologies Ltd IPO
Contact Information
Rategain Travel Technologies Limited
M-140, Greater Kailash Part II,
New Delhi 110 048, Delhi, India
Phone: +91 120 5057 000
Email: compliance@rategain.com
Website: http://www.rategain.com/
Rategain Travel Technologies Ltd IPO Register
KFintech Private Limited
Phone: 04067162222, 04079611000
Email: rategain.ipo@kfintech.com
Website: https://karisma.kfintech.com/
Rategain Travel Technologies Ltd IPO Lead Manager
IIFL Securities Ltd
Kotak Mahindra Capital Company Limited
Nomura Financial Advisory And Securities (India) Pvt Ltd
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