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RATEGAIN IPO

  • Writer: Yash Mehta
    Yash Mehta
  • Dec 5, 2021
  • 2 min read


IPO Details:



Price Band: 405-425

Cutoff Price: 425


About Company:


Leading distribution technology companies globally and are the largest Software as a Service (“SaaS”) company in the hospitality and travel industry in India. Company offers travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents (“OTAs”), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries. Rategain is one of the largest aggregators of data points in the world for the hospitality and travel industry.


Competitive Strengths:

  1. Marquee global customers with long-term relationships.

  2. Innovative AI driven industry relevant SaaS solutions.

  3. Diverse and comprehensive portfolio of revenue maximization and business critical solutions.

  4. Strong financial performance with track record of successful acceleration post acquisitions.

  5. Global and diverse management team with relevant technology and domain expertise and focus on employee welfare.

Strategies:

  1. Continue to scale DaaS and distribution offerings through cross-sell and geographical expansion in existing and adjacent verticals.

  2. Focus on MarTech solutions for the hospitality and travel sector.

  3. Continue to leverage unique data assets to create new AI product offerings.

  4. Pursue strategic investment and acquisition opportunities.


Financial Performance:



Revenue in last three years is almost flat but the company is not in profit.


Objects of the Issue:


The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Offer for Sale.

  2. Repayment/prepayment of indebtedness availed by RateGain UK, one of the Subsidiaries from Silicon Valley Bank.

  3. Payment of deferred consideration for acquisition of DHISCO.

  4. Strategic investments, acquisitions and inorganic growth.

  5. Investment in technology innovation, artificial intelligence and other organic growth initiatives.

  6. Purchase of certain capital equipment for our Data Center


Competitors Comparison:


There are no listed competitors of Rategain. IPO is coming out with P/B value of 16.


Grey Market Premium:


Our view: GMP of the IPO is not that good. Valuation seems to be high in this IPO. I will subscribe to this IPO that too few lots only for listing gains.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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