RateGain IPO: The issue of RateGain IPO of RateGain Travel Technology Limited opened on December 7, 2021. This three-day stock sale will close on December 9. The company, which provides services to the hospitality and travel industry, plans to raise fresh equity shares of Rs 375 crore through the IPO. In addition, 2.26 crore equity shares will be offered for sale in the Offer for Sale (OFS).
The price band for RateGain’s IPO has been fixed at Rs 405-425 per share. Apart from fresh equity, there is also an offer for sale (OFS) in this IPO. Through OFS, the promoter and other shareholders sell their shares. The OFS includes the sale of 1.71 crore equity shares by Wagner Limited, up to 40.44 lakh equity shares of Bhanu Chopra, up to 12.94 lakh equity shares of Megha Chopra and up to 1.52 lakh equity shares of Usha Chopra. In this issue, investors can bid in a minimum of 35 equity shares and multiples thereof. The minimum investment will be Rs 14,875.
On the IPO, Anil Singhvi, Managing Editor of Zee Business, suggests that investors can invest money for medium to long term. He says RateGain is a leader in travel and hospitality technology. The company’s growth outlook is strong. The promoters of the company are also very strong. However, the negative thing with the company is that it is in loss for the last 2 years. Fear of the pandemic may also affect its profits.
In the IPO, the company has reserved shares worth Rs 5 crore for the employees. Employees will be able to take these shares at a discount of Rs 40 per share on the final issue price. The initial share sale on the upper price band is expected to fetch Rs 1,335.73 crore. About 75 per cent of the issue size will be for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Notably, RateGain is one of the largest distribution technology companies at the global level. It is the largest software as a service company (SaaS) in the hospitality and travel industry in India.
