RateGain Travel Technologies Ltd, a firm of travel and hospitality technology services, has submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), joining a long list of firms looking to go public amid compelling primary market behavior.
The proposed IPO draft papers of the Noida-based travel and hospitality software-as-a-service (SaaS) startup includes of a fresh issue of equity shares worth up to Rs 400 crore and an offer for sale of up to 2,26,05,530 equity shares. Wagner Limited would offload 1.71 crore equity shares in the OFS, while Bhanu Chopra would sell up to 40.44 lakh shares alongside Megha Chopra who aims to
release up to 12.94 lakh shares, and Usha Chopra would sell up to 1.52 lakh shares of RateGain. The firm plans to raise Rs 1,200 crore through the IPO, according to unofficial sources.
The firm seeks to incorporate the funds to repay the loan from Silicon Valley Bank procured by RateGain UK, its subsidiary, and also pay deferred consideration for the buyout of DHISCO an information technology company specializing in electronic hotel transaction solutions alongside making strategic investments, acquisitions, and inorganic growth to invest in research, innovation, and artificial intelligence and consider purchasing specific capital accessories for its data center & general corporate purposes.
The firm has appointed Kotak Investment Banking, IIFL Securities, Nomura, and KFin Technologies (Karvy) as book-running lead managers for the IPO. Qualified institutional investors will end up receiving up to 75% of the offering, while non-institutional investors will receive 15% of the offering, and retail investors shall get the remaining 10%.
Due to the consequence of Covid-19 on the travel industry, RateGain’s revenues dropped to Rs 250.7 crore in FY21. The last year, it generated Rs 398.7 crore in overall revenue. In FY21, it also suffered a loss of Rs27.8 crore, more than double from Rs 12.8 crore the previous financial year. In FY19, the firm had a profit of Rs 11.5 crore on revenue of Rs 261.5 crore.