RateGain Travel Technologies' three-day initial public offering (IPO) will open for subscription next week on Tuesday, December 7. The software-as-a-service (SaaS) company has fixed a price band of ₹405-425 a share for its ₹1,335 crore-IPO, which will conclude on December 9. The bidding for anchor investors will open on December 6.
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 are available at a premium (GMP) of ₹105-115 in the grey market. The company plans to list on 17 December on the exchanges.
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. At the upper end of the price band, the initial share-sale is expected to fetch ₹1,335.7 crore.
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.
The funds will also be invested in technology innovation, artificial intelligence and other organic growth initiatives; purchase of certain capital equipment for data centers; and general corporate purposes.
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.
The company offers travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents (OTAs), vacation rentals, package providers, car rentals, rail, travel management companies, cruises.
