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RateGain Travel Raises Rs. 598 Cr from Anchor Investors

08 August 20235 mins read by Angel One
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On 6 December 2021, RateGain Travel Technologies managed to garner as much as Rs. 598 crores from 34 anchor investors. This IPO is opening for subscription on 7 December 2021 and will close on 9 December 2021.

In its BSE filing, the company mentioned that it had allocated around 1,40,90,136 shares to anchor investors at a price of Rs. 425 a share, i.e., the upper price band.

The following sections contain detailed information about the domestic and marquee investors participating in this issue.

A Closer Look at RateGain IPO Anchor Investment

Marquee investors who participated in this anchor book were:

  • Government of Singapore
  • Nomura
  • Monetary Authority of Singapore
  • Pinebridge Global Funds
  • Goldman Sachs
  • Kuber India Fund
  • HSBC
  • Segantii India Mauritius
  • Jupiter South Asia Investment Company
  • Tantallon India Fund
  • BNP Paribas

At the same time, a few domestic investors also participated in RateGain’s anchor book, including:

  • ICICI Prudential
  • Aditya Birla Sun Life Trustee
  • Nippon Life India Trustee
  • SBI Life Insurance
  • Sundaram Mutual Fund
  • Axis Mutual Fund

The company had fixed the price band for this public offer at Rs. 405 – Rs. 425 per share.

About RateGain IPO

RateGain Travel Technologies plans to generate around Rs. 1,335.74 crores through its initial public offering. The company’s public issue will consist of an offer for sale amounting up to Rs. 960.74 crores and a fresh issuance of equity shares of around Rs. 375 crores.

Currently, promoter shareholding in the company is 65.4%. This is expected to fall to 55% after this IPO.

The company has also put aside shares worth Rs. 5 crores for its employees. These employees will bid for these shares at a discounted price of Rs. 40 per share.

RateGain will utilise the IPO proceeds for the following purposes:

  • Repayment of debts taken by RateGain UK
  • Acquisitions, inorganic growth and strategic innovations
  • Investment in technological development and various other organic growth capabilities
  • Purchase of capital equipment for its data centre

The rest of the proceeds will be used for general corporate purposes.

Know About the Company

RateGain Travel Technologies is one of the leading SaaS providers to the Indian travel and hospitality industry. The company extends its services over a host of verticals like airlines, online travel agents, hotels and more.

Further, it operates through three business units, namely:

  1. DaaS (Data as a Service)
  2. Marketing technology
  3. Distribution

Here is a tabular representation of RateGain’s financials:

Total Assets (in Millions) Total Revenue (in Millions) Profit After Tax (in Millions)
31 March 2019 Rs. 2,849.02 Rs. 2,727.00 Rs. 110.34
31 March 2020 Rs. 3,971.08 Rs. 4,576.13 Rs. (201.04)
31 March 2021 Rs. 4,398.04 Rs. 2,640.91 Rs. (285.75)

Bottom Line

As per financials, the company has been experiencing losses since the pandemic. However, it has taken all necessary steps to widen its product portfolio from 4 to 10. As the economy opens, RateGain will continue to stay the market player in the SaaS industry. After listing, it might also enjoy first-mover advantage and gain robust momentum.


Frequently Asked Questions

  1. What portion of shares is reserved for the QIB segment?

The company decided to reserve around 75% of equity shares for QIBs.

  1. Who are the promoters of RateGain?

The company promoters are Bhanu Chopra and Madhu Chopra.

  1. When will RateGain IPO list on the bourses?

The listing date of this IPO is 17 December 2021.


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