RateGain Travel Technologies’ debut trade ends at 20% discount

The shares of RateGain Travel Technologies made a weak debut on the bourses on Friday. The stock listed at Rs 360, a 15 per cent discount to its issue price. It ended the session at Rs 337.55, a 20.5 per cent discount to its issue price.

After listing, the company commands a market capitalisation of Rs 3,603 crore.

RateGain had priced its IPO between Rs 405 and Rs 425 per share. The Rs 1,335-crore IPO comprises a fresh issue of Rs 375 crore and an offer for sale (OFS) of Rs 960.7 crore.

The company plans to utilise the proceeds of its fresh issue for repayment of the debts of its subsidiary, payment of deferred consideration for an acquisition, investment in technology innovation, and purchase of capital equipment for its data centre.

RateGain Travel Technologies is a software as a service (SaaS) company focusing on the hospitality and travel industry. The company offers travel and hospitality solutions across a wide spectrum of verticals, including hotels, airlines, online travel agents (OTAs), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, and cruises and ferries. Rate Gain is also one of the largest aggregators of data points globally for the hospitality and travel industry.

The company began its operations in 2004 by introducing a competitive intelligence price comparison product for hotels.

Over the past 15 years, it has expanded its portfolio to include artificial intelligence and machine learning to offer products in rate intelligence and brand engagement.

Ahead of its IPO, the company raised Rs 598.8 crore to anchor investors.

Kotak Investment Banking, Nomura, and IIFL Securities were the bankers to the issue.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor