Known as the largest Software-as-a-Service (“SaaS”) company in the hospitality and travel industry, the company has fixed a price band of Rs 405-425 per share
Representational image. Firstpost
One of the leading distribution technology companies in the world, RateGain Travel Technologies Limited, will be opening its three-day initial public offering (IPO) for public subscription from tomorrow, 7 December. The three-day issue will close on 9 December.
Known as the largest Software-as-a-Service (“SaaS”) company in the hospitality and travel industry, the company has fixed a price band of Rs 405-425 per share. At the upper price band of the offer, the company hopes to gain Rs 1,335.7 crore.
In the grey market, RateGain’s share premium has slipped to Rs 85 today after commanding Good Manufacturing Practices (GMP) of over Rs 100 in the past few days. As per news reports, the company plans to list on the exchange on 17 December.
Details on financial listing:
According to a Money Control report, RateGain Travel Technologies comprises a fresh issuance of shares worth Rs 375 crore. It also has an offer for sale (OFS) by promoters and investors of up to 2,26,05,530 equity shares. Moreover, investor Wagner, will offload 1.71 crore equity shares through OFS and promoters Usha Chopra, Bhanu Chopra and Megha Chopra will liquidate 54.91 lakh equity shares in the market.
Currently, shareholding of promoters is at 65.4 percent, which will come down to 55 percent after the issue.
Up to 15 percent of the issue is reserved for non-institutional investors while 75 percent will be reserved for qualified institutional buyers (QIBs) . The remaining 10 percent RateGain issue will be reserved for retail investors. For the employees of the company, Rs 5 crore worth of shares are reserved in the offer. They will get the shares at a discount of Rs 40 per share to the final issue price.
During the bidding, investors can bid for a minimum of 35 equity shares. The bidding will be in the multiples of 35 shares thereafter. For one lot, a minimum investment of Rs 14,875 is needed, and for 13 lots, their maximum investment would be Rs 1,93,375.
The proceeds from the IPO will be used for payment of debt availed by the company’s subsidiary, RateGain UK as well as, strategic investments, acquisitions, general corporate purposes and payment for deferred consideration for acquisition of DHISCO.
Company History:
RateGain Travel Technologies started its operations in 2004. Currently, it is one of the largest collectors of data points in the world concerning the hospitality and travel sector. Furthermore, the products which are offered by the company include online travel agents (OTAs), meta-search companies, package providers, car rentals, travel management companies, vacation rentals, cruises and ferries.
