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RateGain Travel Technologies Limited is a SaaS company which is set to go for initial public offering (IPO) on December 7, 2021. The last day for subscription of the IPO is December 9, 2021. The price band for the IPO has been fixed at Rs 405-425 per equity share.
The company plans to raise Rs 1335.74 crore through the IPO which comprises of a fresh issue of equity shares worth Rs 375 crore and Offer For Sales for Rs 960.74 crore. The face value of the share is Re 1.
The offer also includes reservation of shares worth Rs 5 crore for the company’s employees who can purchase the shares at a discount of Rs 40 per equity share to the final issue price.
The company is expected to make stock market debut on the stock exchanges on December 17, 2021.
Company Summary
RateGain is a Software as a Service (SaaS) company catering to the travel and hospitality industry across the world. The company offers travel and hospitality solutions across travel verticals which includes hotels, airlines, online travel agents (OTAs), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries.
The company leverages its big data capabilities and performs integration with other technology platforms helping hospitality and travel providers to acquire guests, retain them and seek to maximize their margins.
The company has divided their services and products into three business units – Data as a Service (DaaS), Distribution and Marketing Technology (MarTech). The company’s DaaS products such as Optima and Parity+ are used by 1,406 active customers. They also have two Distribution products namely RezGain and DHISCO.
As of September 30, 2021, the company serves 1,462 customers including eight Global Fortune 500 companies. Some of their customers include Six Continents Hotels, Inc., Kessler Collection, Lemon Tree Hotels Limited and Oyo Hotels and Homes Private Limited.
In addition, they have 1,220 large and mid-size hotel chains, 110 travel partners including airlines, car rental companies and large cruise companies and over 132 distribution partners including OTAs such as GroupOn and distribution companies such as Sabre GLBL Inc., in over 110 countries as their customers.
RateGain serves their customers across geographies with local go-to market teams and they have offices in six countries. As of September 30, 2021, over 415 customers have been associated with the company for over five years.
Company Strengths
- Long-term and well-established relationship with marquee global customers.
- Provides innovative AI driven and industry relevant SaaS solutions.
- Comprehensive product portfolio which caters to the technology ecosystem of the hospitality and travel industry.
- Strong financial performance with focus on capital efficiency.
- Proven track record of successful acceleration post acquisitions.
- Global and diverse management team with relevant technology and domain expertise.
Company Financials
Particulars | For the year/period ended (Rs in crore) | |||
Apr-Aug FY22 | FY21 | FY20 | FY19 | |
Total Assets | 428.19 | 439.80 | 397.11 | 284.90 |
Total Revenue | 131.22 | 264.09 | 457.61 | 272.70 |
Profit After Tax | (8.34) | (28.58) | (20.10) | (11.03) |
Company Promoters
Bhanu Chopra and Megha Chopra are the promoters of the company.
Purpose of the IPO
- Repayment and prepayment of debt availed by RateGain UK, one of their subsidiaries from Silicon Valley Bank that aggregates to Rs 85.26 crore.
- Payment of deferred consideration amount in instalments along with interest on the unpaid amount aggregating to Rs 25.20 crore for acquisition of DHISCO by RateGain US.
- Strategic investments and acquisitions for inorganic growth aggregating to Rs 80 crore.
- Investment in technology innovation, artificial intelligence and other organic growth initiatives totalling to Rs 50 crore.
- Purchase of certain capital equipment for their data center amounting to Rs 40.77 crore.
- General corporate purposes.
IPO Details
IPO Opening Date | December 7, 2021 |
IPO Closing Date | December 9, 2021 |
Issue Type | Book Built Issue IPO |
Face Value | Re 1 per equity share |
IPO Price | Rs 405 to Rs 425 per equity share |
Market Lot | 35 shares |
Minimum Order Quantity | 35 shares |
IPO Lot Size
Application | Lots | Shares | Amount (Cut-off) |
Minimum | 1 | 35 | Rs 14,875 |
Maximum | 13 | 455 | Rs 1,93,375 |