The three-day initial public offering (IPO) of RateGain Travel Technologies will open for public subscription on December 7 which will conclude on December 9. The software-as-a-service (SaaS) company has fixed a price band of ₹405-425 a share.
The IPO comprises fresh issue of equity shares aggregating up to ₹375 crore and an offer-for-sale (OFS) of up to 2.26 crore equity shares by promoters and existing shareholders.
As per market observers, RateGain Travel shares premium (GMP) have surged in the grey market today to ₹120. The company plans to list on 17 December on the exchanges.
“In highly fragmented market, the company is well positioned to capture wallet share given 1) its comprehensive, inter-operable, innovative industry specific solutions and 2) marquee client base. Rising adoption of technology in T&H industry and increasing demand for third-party technology vendors due to COVID-19 is likely to double serviceable market to $8.45 bn in CY25E for RateGain,” said Prabhudas Lilladher in a note.
The brokerage has recommended investors to subscribe for long term gains. Though, Prabhudas Lilladher sees revenue dependent on a single industry (T&H), high client concentration and considerable contingent liabilities as key risks.
RateGain is among the leading distribution technology companies globally and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India. As of 30 June, it had over 1,400 clients, including eight global Fortune 500 companies.
Proceeds from the fresh issue is aimed to be used for payment of debt availed by RateGain UK, one of the subsidiaries, from Silicon Valley Bank and payment of deferred consideration for acquisition of DHISCO and strategic investments, acquisitions and inorganic growth.
