RateGain IPO Subscribed 17 Times With Robust Investor Interest

The initial public offering (IPO) of travel tech startup RateGain closed today (December 9th, 2021) with the offer subscribed 17.41 times, with healthy demand across investor categories.

Investors placed bids for 30,20,04,780 shares in total, against the 1,73,51,146 on offer, showed the BSE website.

• The non institutional investors (NII) which largely include corporates and high net worth individuals booked the allocated portion 42.04 times. They put in bids for 19,74,52,290 shares against the earmarked 46,96,711 equity shares.
• Qualified institutional buyers (QIBs) placed bids for 7,90,84,950 shares (8.42 times), while only 93,93,424 shares were kept aside for the institutional investors.
• The retail portion was subscribed 8.08 times by the end of the offer. A total of 31,31,141 shares were on offer for the retail institutional investors (RII), and bids came in for 2,52,90,125 shares.
• Employees subscribed the portion reserved for them 1.37 times with bids placed for 1,77,415 shares against 1,29,870 shares on offer.

Traders expect the shares to get listed on the exchanges by December 17, 2021.

The offer opened at the price band of INR 405 – INR 425 on Tuesday, December 7, 2021.

Anchor Investment

On Monday, RateGain raised INR 598.83 Cr in the anchor investment from 34 anchor investors at the upper price band of INR 425 per equity share.

Some of the key anchor investors included — the Government of Singapore, Monetary Authority of Singapore, Nomura, ICICI Prudential Mutual Fund, SBI Life Insurance, Nippon Mutual Fund, Pinebridge, Axis Mutual Fund, Birla Mutual Fund and ICICI Prudential Life Insurance.

RateGain’s Offer For Sale

• Private equity firm TA Associates has put 1,71,14,490 shares for sale through its associate Wagner 
• RateGain founder and CMD Bhanu Chopra has offered 40,43,950 shares 
• The founder’s family members Megha Chopra and Usha Chopra, have offered to sell up to 12,94,760 and 1,52,330 equity shares respectively.

Promoters hold a majority stake (68.35%) in the startup including 50.34%, 16.12% and 1.90% stake held by Bhanu Chopra, Meghna Chopra and Usha Chopra respectively.

On the other hand, Wagner holds 16.13% stake in the company.

RateGain: The Financials

For the last financial year (FY21), the Delhi NCR-based startup reported a net loss of INR 28.57 Cr, 42% higher than INR 20.10 Cr of net loss registered in FY20.

Its revenue from operations fell 37% to INR 250.79 Cr in FY21, compared to INR 398.71 Cr reported in FY20.

Founded in 2004 by Chopra, RateGain offers a SaaS product that helps travel and hospitality companies streamline operations and sales. It enables them to determine the right pricing for their products based on the demand, the current market rates that help hotels and booking agents to maximise revenue.

Its clientele includes InterContinental Hotels, Lemon Tree Hotels, The Kessler Collection and another IPO-bound travel unicorn OYO Hotels and Homes.

Recent Startup IPO Trends

RateGain has joined the list of startups to have gone public of late. 

FSN E-Commerce, the parent company of online lifestyle marketplace Nykaa which witnessed a bumper stock market debut last month had witnessed strong traction among investors right from the start of the offer. The Nykaa IPO was subscribed nearly 82 times at the end of day three of the offer. 

Fintech unicorn Policybazaar’s IPO was booked 16 times, while Fino Payments Bank’s offer was subscribed 2.03 times after initial lukewarm response from investors across categories other than the retail investors for the most part of the three-day offer.

The mega offer of Paytm, was subscribed 1.89 times.