On Day 1, RateGain Lists At 15 Per Cent Discount Over Issue Price

The travel and hospitality solutions provider’s initial share sale saw a strong response from investors, with the issue subscribed 17.41 times on the last day of the offer on December 9

RateGain is expected to fetch Rs 1,335.73 crore at the upper end of the price band. Image: Getty

New Delhi: Travel And hospitality solutions provider RateGain Travel Technologies made a weak initial public offering (IPO) debut on the exchanges on Friday.

The shares the company got listed at Rs 360 on the NSE index, a 15.29 per cent discount over its issue price of Rs 425. On the BSE, the scrip started trading at Rs 364.80.

The Software as a Service (SaaS) company’s initial share sale saw a strong response from investors, with the issue subscribed 17.41 times on the last day of the offer on December 9.

According to the data, non-institutional investors had bought shares 42.04 times the portion set aside for them and the qualified institutional buyers’ portion was subscribed 8.42 times. Retail investors had put in bids for 8.08 times the allotted quota and the employee portion was subscribed 1.37 times.

All the categories, including those for Qualified Institutional Buyers (QIBs) and Retail Individual Investors (RIIs), were oversubscribed.

According to the data, the portion for QIBs was subscribed 8.42 times

The company had raised Rs 599 crore from anchor investors. The travel and hospitality technology services provider’s offer is expected to fetch Rs 1,335.73 crore at the upper end of the price band.

Among other purposes, 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 the acquisition of DHISCO and strategic investments, acquisitions, and inorganic growth.

It will also utilise fresh issue proceeds for strategic investments, investment in technology innovation, artificial intelligence and other organic growth initiatives, and purchase of certain capital equipment for data centre.

The company will repay debts availed by RateGain UK, one of the subsidiaries from Silicon Valley Bank, and make a payment of deferred consideration for acquisition of DHISCO.

The financial result of the firm shows that losses of RateGain widened to Rs 28.57 crore in FY21 from Rs 20.1 crore a year ago because of the Covid-19 crisis. Revenue from operations declined to Rs 250.79 crore from Rs 398.7 crore during the year.