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RateGain Travel Technologies IPO GMP, Financials, Subscription: Last Chance to Invest

RateGain Travel Technologies IPO subscription ends today

RateGain Travel Technologies IPO subscription ends today

Investors can book RateGain Travel Technologies IPO till December 9. The company has fixed a price band of Rs 405-425 per share. Know details before you invest

RateGain Travel Technologies initial public offering (IPO) witnessed a strong response from investors, especially the retail investors. RateGain Travel IPO received bids for 1.56 crore equity shares against the IPO size of 1.73 crore equity shares. The portion reserved for qualified institutional investors (QII) was subscribed 3 per cent while of non-institutional investors was booked 16 per cent. The retail investors’ portion was subscribed 4.66 times, according to the data available. The employees portion saw 75 percent subscription.

RateGain Travel Technologies IPO Price and Date

Investors can book RateGain Travel Technologies IPO till December 9. The software-as-a-service company has fixed a price band of Rs 405-425 per share having face value of Rs 1. At the upper end of the price band, the company aimed to garner Rs 1,335.7 crore. RateGain Travel Technologies IPO comprises a fresh issuance of shares worth Rs 375.0 crore, and an offer for sale of up to 2,26,05,530 equity shares by promoters and investors.

RateGain Travel Technologies: Company Profile

Incorporated in 2004, Rategain Travel Technologies Ltd is one of the leading distribution technology companies globally. It is also the largest software-as-a-service (SaaS) company in the hospitality and travel industry in India. They offer travel and hospitality solutions across a wide spectrum of verticals
including hotels, airlines, online travel agents (OTAs), meta-search
companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries.

RateGain Travel Technologies IPO Valuation

P/BV is 16.78x at NAV of 25.33 as at the end of 5MFY22 calculated at the upper price band of Rs 425 per share. There are no listed peers in India to compare the valuation.

RateGain Travel Technologies IPO GMP

The unlisted shares of RateGain Travel Technologies are trading at a premium of ₹40 in the grey market on December 9. After tepid response from the market in the first two days, the grey market premium of RateGain Travel Technologies dropped on Thursday.

RateGain Travel Technologies IPO: Should you Subscribe?

RateGain Travel Technologies with its marquee global customers and long-term relationships has innovative AI driven industry relevant SaaS solutions. The diverse and comprehensive portfolio of revenue maximisation and business critical solutions with strong financial performance has track record of successful acceleration post acquisitions. “We like the business model of
company. Although company has made losses in FY20 & FY21 but going forward if situation regarding Omicron variant will remain favourable then we think the company will show strong performance. Hence we recommend ‘subscribe’ on issue for limited listing gain to risk takers while issue looks good bet for long term investment, said Hem Securities in a note.

“While RateGain Travel Technologies’ operations were impacted on account of lockdowns imposed and travel restrictions, the company has witnessed an increase in online travel agents and global distribution system) bookings since the beginning of the year 2021. The company has positive EBITDA margins though it has net losses since FY21. The travel and tourism sector is expected to grow in the near future. Considering the factors that RateGain Travel Technologies is the only SaaS to offer competitive intelligent solutions in hospitality, the Issuer will get first mover advantage.  The negatives of the Issue are presence of global unlisted peers, market concentration risk as around 80 per cent revenues come from Europe and North America and it operates in the niche segment of travel sector which is affected the most during the pandemic. The economic scenario is abuzz about the new variant of covid and this makes it an uncertain market.  Hence, Risk savvy investors may enter this IPO for the long term,” said TopShareBrokers.com.

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first published:December 09, 2021, 11:30 IST