For non-institutional investors, up to 15 percent of the issue is reserved while 75 percent will be set aside for qualified institutional buyers and the remaining 10 percent will be for retail investors only
Representational image. News18
The initial public offering (IPO) of one of the top distribution technology companies in the world, RateGain Travel Technologies Limited, opened today, 7 December. The three-day IPO for public subscription will close on 9 December.
As per IPOWatch.in, the issue has been subscribed 0.78 times by retail investors till date, leading to a total subscription of 0.14 times.
The company has set the price band of each share at Rs 405 – Rs 425 whereas the lot size has also been fixed at 35 shares. Meanwhile, at the upper price band of the offer, RateGain Travel Technologies Limited hopes to gain Rs 1,335.7 crore.
Furthermore, on 6 December, the company’s grey market premium (GMP, at which investors buy the shares before it gets listed on a stock exchange) was Rs 85. Recognised to be the largest Software-as-a-Service (“SaaS”) company in travel and hospitality industry, RateGain plans to raise Rs 1,335 crore at a valuation of Rs 4,537 crore, which is about $600 million, with this public issue. Furthermore, a retail investor will shell out Rs 14,175 to buy a lot at a lower end price of Rs 405.
Specifics on financial listing:
This IPO comprises a fresh issuance of shares worth Rs 375 crore. For the offer for sale (OFS), promoters and investors will offer up to 2,26,05,530 equity shares.
Furthermore, top promoters Megha Chopra, Usha Chopra and Bhanu Chopra will liquidate 54.91 lakh equity shares in the market whereas investor Wagner, will offload 1.71 crore equity shares through the OFS. As per recent updates, the shareholding of promoters is at 65.4 percent, but after the issue it will come down to 55 percent.
For non-institutional investors, up to 15 percent of the issue is reserved while 75 percent will be set aside for qualified institutional buyers (QIBs). The remaining 10 percent of the RateGain issue will be for retail investors only. Shares worth Rs 5 crore have been reserved for the employees of the company. Also, they will get the shares at a discount of Rs 40 on the final issue price for per share.
Company History
The company was founded in 2004 by Bhanu Chopra and it offers hospitality and travel software solutions. RateGain covers data points that include pricing, rating, room description, cancellation policy, ranking, availability, discounting and packages, among other things.
