RateGain Travel Technologies IPO

 

RateGain Travel Technologies Limited is a global leader in distribution technology and India’s biggest Software as a Service (SaaS) provider in the hospitality and travel industries. RateGain Travel Technologies IPO will the market in 07 December 2021.

About RateGain Travel Technologies

RateGain Travel Technologies offer travel and hospitality technologies to hotels, airlines, online travel agencies (OTAs), meta-search firms, package providers, car rentals, rail, travel management organisations, cruises, and ferries, among other verticals.

They are one of the globe ‘s leading data integrators for the hotel and travel industries. They deliver a portfolio of interlinked solutions.

Their Solutions enable hotel and travel companies attract more guests, connect them through tailored guest interactions, and maximise their profits by utilising their big-data abilities and interaction with other digital services.

Journey

They started operating in 2004 with the launch of a market research price contrast product for hotels. They cater to a vast and constantly expanding total addressable market. They are increasing their product portfolio rapidly.

Their Product includes artificial intelligence and machine learning functionality that utilise their in-house data lake to offer rate intelligence, cognitive revenue governance, and smart distribution merchandise.

Third-party travel and hospitality technology is expected to be a US$ 5.91 billion market in 2021, with a CAGR of 18% to reach an approximately Usd 11.47 billion in 2025.

The travel technology market is also benefiting from industry digitalization tailwinds in the post COVID times.

Hospitality and Travel Technology Solutions

Their SaaS platform is where they provide their hotel and travel technology solutions, and their products are divided into three strategic business units:

• Data as a Service

Delivers competitive intelligence as well as insights. They can offer suppliers and demand providers with the capacity to link to data and information in order to boost acquisition and conversion rates. They provide information in two categories:

Market intelligence: This gives customers access to a large amount of price and availability data, as well as insights on current trends, opportunities, and market changes.

Dynamic Pricing Recommendations: They employ their unique dynamic pricing technology to help some areas of the travel industry that have historically used a flat or seasonal pricing structure optimise income.

• Distribution

They provide mission-critical distribution between top lodging companies and their demand partners, comprising availability, pricing, inventory, and content connection.

Distribution also allows bookings to be delivered back to hotel systems, ensuring seamless operations and accurate reporting.

• Marketing Technology

Their MarTech solution improves the visitor experience to boost guest happiness, reservations, and loyalty. They also manage social media for luxury travel suppliers, allowing them to respond to social media interactions 24 hours a day, seven days a week, as well as efficiently maintain their social media accounts and execute promotional programmes.

RateGain Travel Technologies IPO

RateGain Travel Technologies Limited, headquartered in New Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 400 crore value equity shares & 22,605,530 equity shares on 16 August 2021.

The Offer includes INR 400 crore value fresh equity shares and There is an offer for sale (OFS) of 22,605,530 equity shares by the promoters mentioned in the DRHP.

They gor approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 22 November 2021.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		439.80	397.11	284.90
Total Revenue		264.09	457.61	272.70
Profit After Tax		(28.58)	(20.10)	11.03

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(3.09)	(3.09)	3
Financial Year 2020	(2.27)	(2.27)	2
Financial Year 2019	1.24	1.24	1
Weighted Average	(2.10)	(2.10)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The main business capabilities, they think, enable them to compete effectively in the industry:

• Long-term partnerships with marquee worldwide clients.
• Industry-relevant SaaS solutions powered by AI.
• Revenue maximisation and business vital solutions in a large and diverse portfolio.
• Excellent financial achievement with a track record of post-acquisition accelerated success.
• With applicable technology and domain skills and an emphasis on staff welfare, a global and multicultural leadership team with suitable technology and subject expertise has been established.

RateGain Travel Technologies IPO Peer Comparison

There are no publicly traded firms in the nation with a range of products and services equivalent to theirs, or a scale of operations comparable to them.

RateGain Travel Technologies IPO Details

IPO Opening Date	07 December 2021
IPO Closing Date	09 December 2021
Issue Type	Book Building
Face Value	1 per share
IPO Price	405 to 425 per equity share
Market Lot	35 shares
Minimum Amount	14875
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	400 Crore
Offer for Sale	22,605,530 equity shares

RateGain Travel Technologies IPO Date

RateGain Travel Technologies IPO opening date is 07 December 2021, and the closing date is 09 December 2021. The RateGain Travel Technologies issue may list in 17 December 2021.

IPO Opening Date	07 December 2021
IPO Closing Date	09 December 2021
Basis of Allotment Date	14 December 2021
Initiation of Refunds	15 December 2021
Credit of Shares to Demat Account	16 December 2021
IPO Listing Date	17 December 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum level of 1 lot

RateGain Travel Technologies IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of RateGain Travel Technologies IPO.

RateGain Travel Technologies IPO GMP

RateGain Travel Technologies IPO Grey Market Premium is 45.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
16 December 2021	45	4200	400
15 December 2021	27	3100	300
14 December 2021	36	3500	400
13 December 2021	31	1300	150
12 December 2021	43	1600	150
11 December 2021	35	1200	100
10 December 2021	42	1000	100
09 December 2021	56	1400	150
08 December 2021	76	2300	250
07 December 2021	56	1100	100
06 December 2021	80	1300	150
05 December 2021	136	2600	250
04 December 2021	143	3300	350
03 December 2021	118	2600	250
02 December 2021	105	1700	200
01 December 2021	135	3100	300

RateGain Travel Technologies IPO Review

If you are looking for answer to your question RateGain Travel Technologies IPO is good or bad then here is the answer you can avoid it for listing gain & you can apply for long term view because the business model is asset light model & management also a significant experience in the same sector.

RateGain Travel Technologies IPO Risk

• The COVID-19 pandemic has had a substantial negative impact on their company and operating performance, and its future impact is unknown.
• The activities of a small number of marketplaces account for a substantial percentage of their revenue.
• They may not realise the expected advantages from their strategic investments and acquisitions, and they may fail to pursue future investments and acquisitions.
• They may face new problems and dangers when they expand into new business sectors or product lines.
• Exchange rate changes may negatively affect their results of operations.
• Failure to defend their intellectual property rights may have a negative impact on their business and brand.

Other Threats

• They face risks as a result of their growth into new geographic areas.
• Their failure to change their pricing methods in order to maintain existing consumers and attract new ones might be detrimental to their business.
• They have a history of net losses, and they expect their costs to rise in the future.
• Failure to deliver excellent customer service and assistance may have a negative impact on their existing client relationships.
• Their sales efforts take a lot of time and money, and their sales cycle is frequently protracted and unpredictable
• Their company may suffer if we do not adequately manage their expansion.
• There are ongoing legal procedures against their company and its promoters

Covid 19 Impact

According to Phocuswright, the worldwide travel and tourism sector contributed 10.4% of global GDP prior to COVID-19 in 2019, however it confronts a number of difficulties, the most serious of which is low digitalization and fragmented, non-interoperable technologies.

COVID-19, on the other hand, has advanced the digitalization of client interactions with hotels and travel agencies. As a result of these developments, hotel and travel firms are expected to migrate away from in-house solutions and toward third-party software and services (Source: Phocuswright Report).

Services

They offer a system that bridges the data gap throughout the hotel and travel industries in a rapidly expanding world of travel technology suppliers.

They offer interoperable solutions that make use of data from both internal and external sources, unlock value via integration, and allow for better, quicker, and automated decision-making.

Their solutions assist hotel and travel firms in finding the appropriate visitor, determining the correct pricing, distributing it through the guest’s chosen channel, and assisting them in having an excellent experience once converted.

Clients

They service approximately 1,400 customers, comprising 8 Fortune 500 organisations from throughout the world. Six Continents Hotels, Inc., a subsidiary of InterContinental Hotels Group, Kessler Collection, a luxury hotel brand, Lemon Tree Hotels Limited, and Oyo Hotels and Homes Private Limited are among our clientele.

As of June 30, 2021, They have 1,186 large and mid-size hotel chains, 104 travel partners as well as airlines, car rental companies, and large cruise companies, and over 144 distribution partners such as OTAs like GroupOn and distribution companies like Sabre GLBL Inc. as clients in over 110 countries.

They have operations in six countries and serve their clients in various regions with local go-to-market teams.

RateGain Travel Technologies IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

RateGain IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
07 December 2021	1	0.00	0.04	2.23	0.34	0.41
08 December 2021	2	0.00	0.08	3.94	0.72	0.75
09 December 2021	3	8.42	42.04	8.08	1.37	17.41

Promoters

• Bhanu Chopra
• Megha Chopra

Promoters’ Holding

Pre Issue Share Holding	81.50%
Post Issue Share Holding