RateGain Files Draft Papers with SEBI for IPO: Know More About its Details!

Travel and hospitality player RateGain Travel Technologies Ltd. is the latest addition to the list of Indian companies joining India’s IPO frenzy. The company filed papers for its initial public offering with SEBI on 17 August 2021. RateGain’s proposed IPO will comprise fresh equity shares worth Rs. 400 crores and an offer for sale.

A Brief Insight of the Company

RateGain is one of the leading Software as a Service (SaaS) companies in the Indian hospitality and travel sector. It is known for offering a diverse range of online travel services, including hotel and airlines booking, car rentals, rail, cruise, ferries, travel management, and much more.

The company deals with integrating its big-data capabilities into other technology platforms and helps the travel and hospitality sector reach out to and acquire more guests.

This Noida-based company was founded in 2004 by Bhanu Chopra. As per the company website, it now operates in more than 110 countries, including the USA, UK, Europe, UAE, and more.

RateGain is backed by US-based private equity fund TA Associates, which pumped $50 million into the company during its first round of funding. It has served more than 1,400 customers as of 30 June 2021. Its client list includes Lemon Tree Hotels, Oyo Hotels, and Homes, Six Continents Hotels, Kessler Collection, etc.

In addition, it deals with 1,186 large and mid-sized hotels and over 104 partners like car rental companies, hotels, cruise companies, and airlines.

What are the Objectives of the Issue?

RateGain plans to raise Rs. 400 crores through its initial public offering. It will be using the proceeds from the IPO for the following purposes:

• To repay the loan availed by one of its subsidiaries RateGain UK, from Silicon Valley Bank.
• To pay for purchasing different capital equipment which is to be installed in its data centers.
• To meet expenses for various acquisitions, strategic investments, and overall growth of the company.
• To pay deferred consideration, needed to acquire DHISCO.
• To meet investment expenses in the field of technological innovation and artificial intelligence.

Details about RateGain IPO

The IPO will consist of a fresh issue of equity shares that would amount to Rs. 400 crores. In addition, there would be an OFS of 2.26 crore shares by the existing promoters and shareholders of the company.

Financial Performance 

Investors need to have a clear understanding of the finances of any company before investing in it. RateGain posted revenue of Rs. 398.7 crores during the previous financial year. However, company revenue slipped to Rs. 250.7 crores in this fiscal year due to the massive impact of the pandemic on the global tourism industry.

It suffered a loss of Rs. 27.8 crores this year as compared to Rs. 12.8 crores last year. During FY19, RateGain clocked revenue of Rs. 261.5 crores against a profit of Rs. 11.5 crores.

Wrapping Up

RateGain had begun to work on its public offering in June 2021. However, not much detail about this IPO is available in the public domain right now.

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Frequently Asked Questions

1. When is the opening date for the RateGain IPO?

The details are not yet available.

2. Who are the lead managers of the issue?

Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities and IIFL Securities

3. Where will the shares be listed during the RateGain IPO?

Both on NSE and BSE