Rategain Travel Technologies Limited IPO

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i. The company’s mission is to be the leading revenue maximization platform for the hospitality and travel industry. They offer an integrated technology platform powered by artificial intelligence enabling our customers to increase their revenue through customer acquisition, retention and wallet share expansion

ii. They are among the leading distribution technology companies globally and are the largest Software as a Service (“SaaS”) company in the hospitality and travel industry in India. They offer 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. They are one of the largest aggregators of data points in the world for the hospitality and travel industry.

iii. They offer a suite of inter-connected products that manage the revenue creation value chain for our customers by leveraging our big-data capabilities and integration with other technology platforms helping hospitality and travel providers acquire more guests, retain them via personalized guest experiences and seek to maximize their margins.

iv. Rategain Travel delivers travel and hospitality technology solutions through the SaaS platform through 3 business units
1. Data as a Service (DaaS)
2. Distribution, and
3. Marketing Technology (MarTech).

v. The business serves over 1400 customers including 8 Global Fortune 500 Companies. Six Continents Hotels, InterContinental Hotels Group, Kessler Collection, Lemon Tree Hotels, Oyo Hotels, and Homes Pvt Ltd are some of the marquee customers served by the company.

Competitive Strengths
i. Marquee global customers with long-term relationships
ii. Innovative AI driven industry relevant SaaS solutions
iii. Diverse and comprehensive portfolio

Objects of the Rategain Travel Technologies Limited IPO:

The Offer comprises of a Fresh Issue of [●] Equity Shares, aggregating up to ₹4,000.00 million by the Company and an Offer for Sale of up to 22,605,530 Equity Shares, aggregating up to ₹ [●] million by the Selling Shareholders. The net proceeds of the Fresh Issue are proposed to be utilised in the following manner: 1. Repayment/prepayment of indebtedness availed by RateGain UK, one of the Subsidiaries, from Silicon Valley Bank 2. Payment of deferred consideration for acquisition of DHISCO 3. Strategic investments, acquisitions and inorganic growth 4. Investment in technology innovation, artificial intelligence and other organic growth initiatives 5. Purchase of certain capital equipment for the Data Center; and 6. General corporate purposes.
DRHP of Rategain Travel Technologies Limited IPO
RHP of Rategain Travel Technologies Limited IPO

Rategain Travel Technologies Limited IPO Details:

Open Date: Dec 07 2021
Close Date: Dec 09 2021
Total Shares: 31429176
Face Value: ₹ 1 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 1,335.74 Cr.
Lot Size: 35 Shares
Issue Price: ₹ 405 - 425 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 17 2021

Promoters And Management:

i. Bhanu Chopra, is the Chairman and Managing Director of the Company. He is also one of the Promoters of the Company and has been a member on the Board since incorporation. He is an entrepreneur with experience of over 15 years and has been actively involved in the day-to-day running of the Company since incorporation. He holds a master’s degree in finance and computer science from Indiana University, after which he began his career with Deloitte in 1998. ii. Megha Chopra, is an Executive Director of the Company. She is also one of the Promoters of the Company and has been a member on the Board since incorporation. She is an entrepreneur with more than eight years of experience in the Company and has been actively involved in the day-to-day running of the Company. She holds a post graduate diploma in family business management from Narsee Monjee Institute of Management Studies, Mumbai. Prior to her directorship in the Company she was associated with HCL Infosystems Limited. iii. Nishant Kanuru Rao, is a Non-Executive Nominee Director of the Company and a nominee of Avataar. He holds a bachelor’s degree in computer science from University of Texas, Austin, United States and a master’s degree in business administration from Massachusetts Institute of Technology, Cambridge, USA and is a venture capitalist by profession. Previously, he has been associated with LinkedIn Corporation USA, Freshdesk Technologies Private Limited and Sirion Labs Private Limited. Currently, he is a partner at Avataar Venture Partners, which was founded by him in 2019.

Financials of Rategain Travel Technologies Limited IPO:

Particulars (in Millions) Mar 21 Mar 20
Revenue 2,508 3,987
Employee benefits expense 1,512 2,058
Impairment of goodwill 537
Other expenses 933 1,642
Operating profit 62 -250
OPM % 2% -6%
Other Income 132 588
Finance Cost 82 89
Depreciation 358 426
Profit Before tax -246 -177
Profit After Tax -279 -128
EPS -3.09 -2.27
 

Comparison With Peers:

There are no listed companies in India that engage in a business similar to that of our Company.

Recommendation on Rategain Travel Technologies Limited IPO:

Review and Recommendation of Rategain Travel Technologies by InvestorZone is 3/10 [Nothing great in the company in terms of financial performance. The sector in which company is doing business i.e. Travel has suffered the heavy losses during covid-19 and condition are not improving with covid is still around. And, again with scare of Omicron virus, the travel restrictions are already started. There is no peer available in the market to ascertain the valuation, i.e over-valued or under-valued.]

Lead Manager of Rategain Travel Technologies Limited IPO:

  1. IIFL Holdings Limited
  2. Kotak Mahindra Capital Company Limited
  3. Nomura Financial Advisory And Securities (India) Private Limited

Registrar of Rategain Travel Technologies Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Rategain Travel Technologies Limited M-140, Greater Kailash Part II, New Delhi 110 048, Delhi, India Phone: +91 120 5057 000 Email: compliance@rategain.com Website: http://www.rategain.com/

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