RateGain Travel Technologies launches QIP with a floor price set at Rs 676.66 per share

RateGain Travel Technologies Limited, positioned as a global distribution technology firm and the leading Software as a Service (SaaS) provider within India’s travel and hospitality sector, announced its QIP yesterday evening post-market closing.

According to the information provided, the company’s board of directors approved and adopted the preliminary placement document dated November 15, 2023, along with its corresponding application form. This action was in relation to the proposed placement of equity shares valued at Rs 1 each, referred to as “Equity Shares,” under the Qualified Institutions Placement (QIP).

The QIP commenced today, November 15, 2023. The company also specified the floor price for the issue at Rs 676.66 per share. This issue price represents a 5% discount compared to the previous day’s closing price of Rs 711.75 per share on the BSE.

Following the news, today the stock is trading at a price lower than the previous day’s closing price. As of writing the article the shares of the company are trading at Rs 703.55 per share which is 1.15% down from the previous day’s closing price of Rs 711.75 per share on the BSE. Its 52-week highs and lows are Rs 730 and Rs 262.65 per share. The current market capitalisation of the company stands at Rs 7629.76 crore.

Furthermore, the stock has generated an impressive multibagger return of 152% during the past year. In terms of ownership, the promoter holding is at 55.72% while the FIIs and DIIs hold 5.42% and 17.81% and public investors hold the remaining 21.06%.

Financial Performance 

In the second quarter of FY24, the company reported revenues of Rs 235 crore, marking an 88% Year-on-Year (YoY) increase compared to the same quarter in the previous year when the revenue stood at Rs 125 crore. The company’s operating profit for the quarter stood at Rs 46 crore, compared to Rs 18 crore in the corresponding quarter of the previous year, resulting in an operating profit margin of 20%.

The company’s net profit amounted to Rs 30 crore, a significant surge from the net profit of Rs 13 crore in the same period last year, representing a 130% year-on-year increase.

The company demonstrates a strong financial performance with Return on Capital Employed (ROCE) and Return on Equity (ROE) at 10% each. Moreover, the company’s stocks are trading at a Price-to-Earnings (PE) ratio of 74.7 times in the market.

Business Overview 

RateGain Travel Technologies Ltd holds the top position as a global distribution technology company and stands as the foremost Software as a Service (SaaS) provider in India’s travel and hospitality industry. The company extends its travel and hospitality services across various sectors, encompassing hotels, airlines, online travel agents, meta-search companies, package providers, car rentals, cruises, and ferries.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.