RateGain Travel IPO subscribed 17.4 times on robust HNI interest

Wealthy investor portion was subscribed 42 times, while institutional and retail portions were oversold 8x each

The initial public offering (IPO) of RateGain Travel Technologies, a firm that provides software support to the travel and hotels industry, saw 17.4 times more demand than the shares on offer.

The institutional portion, excluding the anchor book, was subscribed 8 times, the wealthy investor portion was subscribed 42 times. The retail investor portion was subscribed nearly 8 times, and employee quota was subscribed 1.37 times, data provided by stock exchanges showed.

The IPO comprised of Rs 375 crore fresh fund raise and Rs 961 crore offer for sale. The price band for the IPO is Rs 405-425 per share.

At the top-end, the company will be valued at Rs 4,537 crore. In FY21, the company had reported operating revenue of Rs 251 crore and a loss of Rs-28.6 crore.

RateGain Travel offers SaaS (software as a solution) services to hotels, airlines, online travel agents, meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries.

Ahead of its IPO, the company had allotted Rs 598 crore worth of shares to anchor investors. Some of them included Goldman Sachs, Nomura, the Government of Singapore, the Monetary Authority of Singapore and HSBC MF.

The company plans to utilise the fresh issue proceeds for repayment of debts of its subsidiary, strategic investments, acquisitions, and inorganic growth. The company plans to invest in technology innovation, artificial intelligence and purchase of certain capital equipment for its data centre from its proceeds.