RateGain Travel IPO Review 2021: RateGain Travel Technologies initial public offer (IPO) will open for subscription on December 7th, 2021, and close on December 9th, 2021. The company is looking to raise ₹1,335.74 crores. This IPO will be the first SaaS company’s attempt to list in the Indian stock market. In this article, we take a closer look at the RateGain Travel Technologies IPO Review 2021. Keep Reading to find out!
Table of Contents
About the Company
RateGain Travel Technologies is a Software as a Service (SaaS) provider in the travel and hospitality industry in India. Founded in 2004, RateGain has come a long way to become one of the leading distribution technology companies globally. In addition to this, the company is also the largest SaaS provider in the travel and hospitality industry in India. This IPO will also mark the entry of SaaS companies on the Indian stock market.
The company offers travel and hospitality services across various different verticals. These include hotels, airlines, online travel agents (OTA), meta-search companies, rail, travel management companies, package providers, car rentals, cruises and ferries. The Third-party travel and hospitality technology are estimated to be a $5.91 billion market in 2021. In addition to this, it is expected to grow at a CAGR 18% to $11.47 billion in 2025.
The company is also one of the largest aggregators of data points in the hospitality and travel industry worldwide. They offer their services through the SaaS platform through 3 main business units.
- Data as a Service (DaaS)
- Distribution
- Marketing Technology (MarTech).
The company has a very rich client base of 1400 customers across 110 countries. Their services are provided to 1,186 large- and mid-size hotel chains, 104 travel partners (airlines, car rentals and cruise companies) and 144 distribution partners. The company also has 8 clients that are a part of Global Fortune 500 Companies:
- Six Continents Hotels
- InterContinental Hotels Group
- Kessler Collection
- Lemon Tree Hotels
- Oyo Hotels
- Homes Pvt Ltd
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Key IPO Information
Bhanu Chopra and Megha Chopra are the promoters of the company. The issue includes both a fresh issue of shares and an offer for sale. Investor Wagner will sell 1.71 crore equity shares with promoters Bhanu Chopra, Megha Chopra, and Usha Chopra selling 54.91 lakh equity shares through the OFS.
The company has appointed Kotak Mahindra Capital Company, IIFL Securities, and Nomura Financial Advisory and Securities (India) as the book running lead managers to the issue. KFin Technologies has been appointed as the registrar for the issue.
| Particular | Details |
|---|---|
| IPO Size | ₹1,335.74 Cr |
| Fresh Issue | ₹375.00 Cr |
| Offer For Sale(OFS) | ₹960.74 Cr |
| Opening Date | Dec 7, 2021 |
| Closing Date | Dec 9, 2021 |
| Face Value | ₹1 per equity share |
| Price Band | ₹405 to ₹425 |
| Lot Size | 35 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Dec 17, 2021 |
Objects of the Issue
The proceeds from the IPO will be used for the following purposes:
- Repaying of debts availed by its subsidiary RateGain UK
- Payment of deferred consideration for the acquisition of DHISCO
- To finance inorganic growth through strategic investments and acquisitions
- For investment in tech innovation, AI and other organic growth
- Purchase of capital equipment for data centres.
- Other general corporate purposes
In Closing
In this article, we covered the RateGain Travel IPO Review 2021. The Initial Public Offering opens on December 7th and closes on December 9th. For investors, it can be a good opportunity to look into the company and apply for the IPO after analysing the prospects and strengths.
Are you applying for this IPO or not? Do let us know in the comments below.
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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