RateGain Launches QIP To Raise INR 600 Cr, Sets Floor Price Of INR 676.66 A Share

Traveltech SaaS startup RateGain has launched a qualified institutional placement (QIP) to raise fresh capital at a floor price of INR 676.66 per share. 

RateGain’s board considered and approved the placement at a meeting held on Wednesday (November 15).

“We wish to inform you that… the Fund Raise Committee has, at its meeting… considered and approved the approval and adoption of the preliminary placement document… and approved the floor price for the Issue, being INR 676.66 per equity share based on the pricing formula..” said RateGain in a regulatory filing with the bourses.

The filing further noted that the company may offer a discount of up to 5% on the floor price of the issue. 

While the company refused to publicly disclose the size of the issue, sources told CNBC-TV18 that the traveltech startup plans to raise INR 600 Cr through the exercise, which will also include an INR 200 Cr greenshoe option. 

It was not immediately clear how and where the company plans to utilise the proceeds of the QIP. 

The QIP will reportedly lead to 8% equity dilution and will be overseen by Axis Capital and IIFL Capital. As per the report, the indicative issue price for the QIP would hover around the INR 643 per share mark. This represents a discount of nearly 10% from the startup’s last closing price on Wednesday. 

Founded in 2004, RateGain offers SaaS solutions for the travel and hospitality industry. The platform claims to work with more than 3,000 customers and 700 partners spanning 100 countries. 

The development comes just weeks after the traveltech startup more than doubled its consolidated net profit to INR 30.04 Cr in the second quarter (Q2) of the financial year 2023-24 (FY24) compared to INR 12.96 Cr in Q2 FY23. Meanwhile, operating revenue soared 88.4% YoY to INR INR 234.7 Cr in the quarter ended September 2023. 

Since releasing the quarterly results, markets have responded largely cheerfully. In the past one month, the company’s share prices have appreciated by more than 18% on the BSE. RateGain also notched up its 52-week high of INR 730.10 during intraday trading on the BSE on November 15. 

Eventually, the stock closed 0.89% lower at INR 711.75  on the BSE on Wednesday. 

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