SUMMARY
It allotted 14,090,136 equity shares in the anchor round
The IPO will open on Tuesday, December 7 and close on December 9
The offer includes a fresh issue of shares worth INR 375 Cr
Travel tech startup RateGain has raised INR 598.83 Cr in the anchor investment round ahead of its IPO.
RateGain has allotted 14,090,136 equity shares at the upper price band of INR 425 per equity share.
Some of the key anchor investors were 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, ICICI Prudential Life Insurance.
The Government of Singapore has invested nearly INR 70 Cr while the Monetary Authority of India has invested INR 15.10 Cr.
Out of the total allocation of 14,090,136 equity shares to the anchor investors, 4,235,420 equity shares were allocated to six domestic mutual funds including ICICI Prudential, Aditya Birla Sun Life, Nippon Life India, through a total of 20 schemes.
The IPO will open on Tuesday, December 7 at a price band of INR 405 – INR 425.
The offer includes a fresh issue of shares worth INR 375 Cr and an offer for sale (OFS) of up to 2,26,05,530 shares. Shares worth INR 5 Cr will be reserved for the eligible employees.
RateGain has lowered its fresh issue size from the initially proposed INR 400 Cr.
Bids can be made for a minimum of 35 equity shares and in multiples of 35 shares thereafter.
RateGain’s Offer For Sale
- Private equity firm TA Associates will offload up to 1,71,14,490 shares for sale through its associate Wagner.
- RateGain founder and CMD Bhanu Chopra will be offloading 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.
Utilisation Of the Net Proceeds
As per the RHP, RateGain will use INR 85.26 Cr to repay a loan taken by RateGain UK from Silicon Valley Bank. Further, it will use INR 25.2 Cr of the proceeds in deferred consideration for the DHISCO acquisition from 2018.
The company has proposed to allocate INR 40.77 Cr to purchase capital equipment for its data centre.
It will also look to invest INR 80 Cr towards strategic investments, acquisitions and inorganic growth and INR 50 Cr for technology innovation, artificial intelligence and other organic growth initiatives.
Founded in 2004 by Chopra, RateGain offers a SaaS product targeted at travel and hospitality companies to help them streamline operations and sales. It enables these businesses to determine the right pricing for their products based on the demand, the current market rates and more to help hotels and booking agents maximise revenue.
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.
Its clientele includes InterContinental Hotels, Lemon Tree Hotels, The Kessler Collection and another IPO-bound travel unicorn OYO Hotels and Homes.
