December 7, 2021 6:33:32 pm
Rategain Travel Technologies IPO: The initial public offering (IPO) of Rategain Travel Technologies opened for subscription on Tuesday, December 7, 2021. The offer got 41 per cent subscribed by the end of the first day of bidding.
It received total bids for 71,88,090 shares across both the stock exchanges against 1,73,51,146 shares on offer, data from BSE showed.
The Rs 1,335.73 crore Rategain IPO will be available for subscription till Thursday, December 9, 2021, and the price band of the company has been fixed at Rs 405-425 per share.
The IPO comprises a 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 Ltd, 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 net proceeds from the fresh issue will be used for payment of debt availed by RateGain UK, one of the subsidiaries, from Silicon Valley Bank; payment of deferred consideration for acquisition of DHISCO and strategic investments, acquisitions and inorganic growth. That apart, the funds will be invested in technology innovation, artificial intelligence and other organic growth initiatives; purchase of certain capital equipment for data center; and general corporate purposes.
75 per cent of the Rategain issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Investors who wish to subscribe to Rategain IPO can bid in a lot of 35 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,875 to get a single lot of Rategain Travel Technologies. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Friday, December 10, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Kotak Mahindra Capital Company, IIFL Securities and Nomura Financial Advisory and Securities (India) are the book running lead managers to the offer while KFin Technologies is the registrar of the issue.
Rategain Travel Technologies 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. The company offers 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.
Before heading into the IPO, Rategain Travel Technologies raised nearly Rs 599 crore (Rs 5,98,83,07,800.00) from 34 anchor investors in lieu of 1,40,90,136 equity shares at Rs 425 each, data from the stock exchanges showed.
The anchor investors include the likes of Government of Singapore, Monetary Authority of Singapore, Nomura, Goldman Sachs Funds, Aditya Birla Sun Life Mutual Fund (MF), ICICI Prudential MF, Sundaram MF, Axis MF, SBI Life Insurance Company, ICICI Prudential Life Insurance Company and BNP Paribas Arbitrage among others.
The share allotment is likely to take place on Tuesday, December 14, 2021, and the shares are expected to be listed on Friday, December 17, 2021, according to the timeline given in the red herring prospectus (RHP).
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