Rategain Travel Tech IPO gets 75% subscription on second day of offer

The travel and hospitality technology services provider’s offer is expected to fetch Rs 1,335.73 crore at the upper end of the price band.

On Monday, RateGain Travel Technologies on Monday raised Rs 599 crore from anchor investors. (Representative image)
On Monday, RateGain Travel Technologies on Monday raised Rs 599 crore from anchor investors. (Representative image)

The initial public offer of Rategain Travel Technologies Ltd received 75 per cent subscription on the second day of the offering on Wednesday, with the retail investors’ portion getting subscribed 3.98 times.

The sale, which opened on Tuesday, attracted bids for 1,29,32,815 shares as against 1,73,51,146 shares on offer. This translates to 75 per cent subscription, according to latest data available with the BSE.

A fresh issue of up to Rs 375 crore and an offer for sale of up to 2,26,05,530 equity shares make up the Initial Public Offer (IPO). The price band for the offer is Rs 405-425 per share.

The category reserved for Retail Individual Investors (RIIs) was subscribed 3.98 times with more than 1.24 crore bids coming in. Around 31.31 lakh shares are on offer in this segment.

As per the data, 8 per cent of the non-institutional investors’ category was subscribed. The number of shares on offer in this segment is more than 46.96 lakh shares.

The portion for Qualified Institutional Buyers (QIBs) did not receive any subscription on the second day where little more than 93.93 lakh shares are for sale. The portion reserved for employees received 72 per cent subscription.

On Monday, RateGain Travel Technologies on Monday raised Rs 599 crore from anchor investors.

The travel and hospitality technology services provider’s offer is expected to fetch Rs 1,335.73 crore at the upper end of the price band.

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.

Besides, the funds will be invested in technology innovation, artificial intelligence, and other organic growth initiatives; purchase of certain capital equipment for the data centre; and general corporate purposes.

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