The initial public offer (IPO) of RateGain Travel Technologies is going to close on Thursday. As of 11:23 am, the IPO received a 94 per cent subscription, as per the data available with the exchanges showed.
The company had fixed a price band of Rs 405-425 a share for its Rs 1,335 crore-IPO.
According to the NDTV report, the qualified institutional buyers (QIBs) was subscribed 3 per cent against the segment alloted for them. The portion of non-institutional investors saw 16 per cent subscription, and the employee reserved category witnessed 79 per cent bookings.
Moreover, the IPO witnessed a positive and robust response from the retail investors and the segment was subscribed 4.86 times (486 per cent).
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.
Earlier, as per analysts, the grey market is cautiously watching the investors' response to RateGain IPO. They said that after tepid response on the first two days of bidding, shares of RateGain are trading at a premium of Rs 40 in the grey market on Thursday, reported Mint.
Meanwhile, check what analysts say, according to a report published in The Economic Times.
At the higher price band of Rs 425, the issue seems expensive. Given the re-emergence of pandemic fear and its impact on the global travel & hospitality industry, there is higher uncertainty about the business growth outlook. Considering all the above parameters, we assign a ‘Subscribe with Caution’ rating to the issue.
Canara Bank Securities
The brokerage house has given a subscribe call to the issue for a long-term gain. It said the company’s business is scalable with an asset-light business model, leveraged with technology backed by artificial intelligence.
RateGain Travel 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, cruises and ferries.
Kotak Mahindra Capital Company Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited have been appointed as lead managers for the issue.