RateGain Travel Technologies Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Rategain IPO

RateGain IPO: Key Details

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Rategain, incorporated in 2004, is among the leading distribution technology companies globally and is the largest Software as a Service (“SaaS”) company in the hospitality and travel industry in India. They offer travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents (“OTAs”), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries.

They offer a suite of interconnected products that manage the revenue creation value chain for customers by leveraging big-data capabilities and integration with other technology platforms helping hospitality and travel providers acquire more guests, retain them via personalized guest experiences and seek to maximize their margins.

Competitive Strengths

  • Marquee global customers with long-term relationships;
  • Innovative AI driven industry relevant SaaS solutions;
  • Diverse and comprehensive portfolio of revenue maximization and business critical solutions;
  • Strong financial performance with track record of successful acceleration post acquisitions; and
  • Global and diverse management team with relevant technology and domain expertise and focus on employee welfare

Company Strategy

  • Continue to scale DaaS and Distribution offerings through cross-sell and geographical expansion in existing and adjacent verticals
  • Focus on MarTech solutions for the hospitality and travel sector
  • Continue to leverage unique data assets to create new AI product offerings
  • Pursue strategic investment and acquisition opportunitiesmaintaining operational efficiency and profitability

Proceeds from RateGain IPO will be used to:

  • Repayment/prepayment of indebtedness availed by RateGain from Silicon Valley Bank;
  • Payment of deferred consideration for acquisition of DHISCO;
  • Strategic investments, acquisitions and inorganic growth;
  • Investment in technology innovation, artificial intelligence and other organic growth initiatives;
  • Purchase of certain capital equipment for the Data Center; and
  • General corporate purposes

RateGain IPO: Financials

201920202021 Mar2021 June
Revenue from Ops₹261.57 Cr₹398.71 Cr₹250.79 Cr₹125.27 Cr
Prof Before Exp. Items₹9.49 Cr₹(17.76) Cr₹(24.63) Cr₹(4.64) Cr
Profit after Tax₹11.03 Cr₹(20.10) Cr₹(28.56) Cr₹(8.34) Cr
EPS (Basic)1.24(2.27)(3.09)(0.86)
₹ in Crores, except EPS

EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS(2.10)
* Weighted Average for last 3 years

RateGain IPO: Comparison with listed industry peers

As per RHP, there are no listed companies in India whose business portfolio is comparable with that of Rategain’s business and comparable to the scale of its operations.

RateGain IPO Dashboard

Issue Details

TypeValue
Issue Size₹1,335.74 Cr
Fresh Issue₹375.00 Cr
Offer for Sale₹960.74 Cr
Face Value₹1/- per Equity Share
IPO Price₹405 – ₹425
Lot Size 35 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open7/12/2021
Bid Close9/12/2021
Allotment Finalization14/12/2021
Initiation of Refunds15/12/2021
Credit of Shares16/12/2021
Listing Date17/12/2021

Lot Size and Price

LotsSharesAmount
135₹14,875
13455₹1,93,375

Promoter Holding

HoldingPercentage
Pre-Issue67.29%
Post-Issue

RateGain IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%
NII15%
RII (Retail)10%
Employees
Total100%

RateGain IPO: Risks

  • Substantially all of the revenues are derived from the worldwide hospitality and travel industry
  • The COVID-19 pandemic has had a significant adverse effect on the business, and its future impact is uncertain.
  • They have issued Equity Shares during the preceding twelve months at a price that may be below the Offer Price.
  • Any decline in the customer contract renewals or expansion or any impairment of the long-term relationships with customers would adversely affect the business
  • The market for SaaS solutions in the hospitality and travel industry is new and evolving, and if this market
    develops more slowly than expected or declines, or develops in a way that they could not adapt, the business could be adversely affected

For complete internal and external risk factors, you can refer to the RHP of the company.

RateGain IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

  • Kotak Mahindra Capital Company Limited
  • IIFL Securities Limited
  • Nomura Financial Advisory and Securities (India) Private Limited

Phone: +91 22 4366 0000
Email: [email protected]

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