Rategain Travel Technologies Limited IPO : Key Highlights and Financial Details

Rategain Travel Technologies Limited is amongst the top companies in the distribution technology segment in the world and is the biggest provider for SaaS. The SaaS technology caters to two business verticals – Hospitality and Travel. The company has many top companies of the world as its clients. It has a privilege to work with 8 Global Fortune 500 companies. The business verticals for the company operate in three tranches such as DaaS, Distribution and Marketing Technology.

IPO DETAILS

Rategain Travel Technologies Limited IPO is set to launch on 7th Dec., 2021. The subscription timeline extends till 9th Dec, 2021. The size for the IPO is 1335.74 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 375 Crore. Shares issued through Offer for Sale are worth Rs. 960.74 Crore. The lot size is 35 shares and the price range is 405 Rs. – 425 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re.1 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	7th Dec, 2021
CLOSING DATE FOR IPO	9th Dec, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	1 Re. per share
IPO price band	405 Rs. – 425 Rs.
LOT SIZE	35 shares
MINIMUM ORDER QUANTITY	35 shares
ISSUE SIZE	1335.74 Crore Rs.
OFFER FOR SALE	960.74 Crore Rs.
FRESH ISSUE	375.00 Crore Rs
LISTING AT	NSE, BSE
LISTING DATE	17th Dec, 2021

IMPORTANT DATES

IPO OPENING DATE	7th Dec, 2021
CLOSING DATE FOR IPO	9th Dec, 2021
IPO ALLOTMENT DATE	14th Dec, 2021
REFUNDS	15th Dec, 2021
DEMAT A/C CREDITED ON	16th Dec, 2021
IPO LISTING DATE	17th Dec, 2021

Rategain Travel Technologies Limited IPO begins for subscription from 7th Dec, 2021. The IPO subscription would continue till 9th Dec, 2021. The allotment status for the shareholders who applied would come on 14th Dec, 2021. The refunds for the ones who did not get allotment would be initiated on 15th Dec, 2021. The DEMAT accounts of shareholders would be credited on 16th Dec, 2021. The listing of the company would be accompanied on 17th Dec, 2021.

Lead Managers And Promoters

The lead managers are :

• IIFL Securities Limited
• Nomura Financial Advisory and Securities India Private Limited
• Kotak Mahindra Capital Company Limited

The minimum lot size for the company is decided at 35 shares. This holding accounts to 14875 Rs.. The maximum lot size is decided at 455 shares. This amounts to Rs.193375. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	35 shares	14875 Rs
Maximum	455 shares	193375 Rs

OBJECTIVES FOR THE IPO

• The funds can be utilized for General corporate purposes.
• Rategain’s UK wing is under huge pressure of debt. Hence the indebtedness of the UK branch is one of the reasons for IPO.
• The company wants to expand its reach and hence is planning to invest more into data centres and technology advancement. Thus for expansion purposes and inorganic growth purposes the IPO money will be utilized.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	4398	3971	2850
REVENUE	2641	4577	2728
NET PROFIT	-286	-201	111

The company’s financials are not stable due to the COVID situation. The assets are increasing over time which signals a strong expansion process and reinvestment of liquidity. However the revenues have taken a big hit due to the COVID situation. In the current scenario the company’s revenue has been cut by almost 50% and the loss is widening every year. Even before COVID the loss of the company has been recorded. Hence the company is struggling to maintain its stability since the last 2 years.

PROS

• The company has a good amount of share in its business segment.
• It has 8 clients from the global 500 fortune companies of the world.
• Rategain is the largest SaaS provider in the world.
• It serves clients such as OYO, Lemon Tree, Continental Hotels and more.
• Its main work is related to technology for hospitality and Travel and it has major clients in those fields. Hence the company has a good grip in the market share.

CONS

• The major problem seems to be the financials of the company. The company seems highly unstable since the last 2 years. Also the debt ridden UK wing is troubling the company’s balance sheet. Hence the liquidity crunch is clearly visible for the company.

Rategain Travel Technologies Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Rategain Travel Technologies Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.