It’s the last day to subscribe to RateGain’s IPO — GMP at ₹78

• RateGain intends to raise ₹1,335 crore through this public issue.
• RateGain is seeking a valuation of $600 million at the upper end of the price band.
• It is a SaaS platform, which solely focuses on the travel and hospitality segment.
  

The initial public offering (IPO) of RateGain Travel Technologies has been subscribed 75% on the second day of its public issue. The issue will open for subscription for the last time today, December 9.

The portion reserved for retail investors has been fully subscribed, whereas the portion reserved for qualified institutional investors has not received any bidding so far.


The software-as-a-services (SaaS) platform, which solely focuses on the travel and hospitality segment, intends to raise ₹1,335 crore through this public issue. The capital will be raised through both fresh issue and offer for sale (OFS) by existing shareholders of the company.

The company will likely list on the stock exchange on December 17.

The price range of RateGain’s IPO has been set at ₹405-₹425. The minimum lot size is 35 shares, meaning a retail investor would have to shell out ₹14,875 to buy one lot. The grey market premium (GMP), premium at which investors are comfortable buying the shares before it gets listed on a stock exchange, was at ₹78 on December 8.

RateGain is seeking a valuation of ₹4,537 crore (about $600 million) at the upper end of the price band.

Founded in 2004 by Bhanu Chopra, RateGain offers travel and hospitality software solutions. It’s softwares covers an entire set of data points including pricing, rating, ranking, availability, room description, cancellation policy, discounting and packages, among other things.

The company has over 1,434 customers — across the hotel, hospitality and online travel agency (OTA) segment — spread across 110 countries. It’s clientele includes Lemon Tree, InterContinental Hotels Group, Kessler Collection, GroupOn and Sabre GLBL.

Stock brokerages — including Reliance Securities, Prabhudas Lilladher, Arihant Capital, Aditya Birla Capital — have recommended subscribing to the issue.

“While there is no listed peer available for a direct comparison to RateGain in the domestic market, its valuations at ~50% discount to unicorns like Zomato and Paytm give comfort on the valuation front. In the new era of internet and AI [artificial intelligence]-based software services, we believe the premium valuation of the company is likely to sustain,” Reliance Securities said in its latest report. A unicorn, in startup parlance, is a firm valued at or over a billion dollars.

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