The three-day initial public offering (IPO) of RateGain Travel Technologies will open for public subscription tomorrow 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.
According to market observers, RateGain share premium have slipped to ₹85 in the grey market today after commanding GMP of over ₹100 in the past few days. The company plans to list on 17 December on the exchanges.
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.
The OFS comprises sale of 1.71 crore equity shares by Wagner Limited, up to 40.44 lakh equity shares by Bhanu Chopra and up to 12.94 lakh equity shares by Megha Chopra and up to 1.52 lakh equity shares by Usha Chopra.
The offer includes a reservation of shares worth ₹5 crore for the company's employees who will receive those shares at a discount of ₹40 per share to the final issue price.
At the upper end of the price band, the initial share-sale is expected to fetch ₹1,335.73 crore. Kotak Mahindra Capital Company Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited have been appointed as lead managers for the issue.
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.
