New Delhi: Travel and hospitality solutions provider RateGain Travel Technologies on Friday launched a weak initial public offering (IPO) on the exchanges.
The company’s shares were listed on the NSE index at Rs 360, a discount of 15.29 per cent over its issue price of Rs 425. On BSE, the stock started trading at Rs 364.80.
The software-as-a-service (SaaS) company’s initial share sale saw strong response from investors, with the issue being subscribed 17.41 times on the last day of the offer on December 9.
As per the data, the non-institutional investors had bought 42.04 times the shares earmarked for them and the eligible institutional buyers subscribed 8.42 times. Retail investors had bid for 8.08 times the allotted quota and the employee share was subscribed for 1.37 times.
All categories including Qualified Institutional Buyers (QIBs) and Retail Individual Investors (RIIs) were oversubscribed.
According to the data, the share of QIBs was subscribed 8.42 times
The company had raised Rs 599 crore from anchor investors. The offering from the travel and hospitality technology services provider is expected to fetch Rs 1,335.73 crore at the upper end of the price band.
Among other purposes, the proceeds from the new issue will be used to pay off a loan taken by RateGain UK, one of Silicon Valley Bank’s subsidiaries; Payment of deferred consideration for acquisitions and strategic investments, acquisitions and inorganic developments of DHISCO.
It will use the new issue to fund strategic investments, investments in technology innovation, artificial intelligence and other organic growth initiatives, and the purchase of some capital equipment for the data center.
The company will repay a loan taken by RateGain UK, one of Silicon Valley Bank’s subsidiaries, and pay a deferred consideration for the acquisition of Disco.
The firm’s financial result shows that the rategain loss widened to Rs 28.57 crore in FY2011 from Rs 20.1 crore a year ago due to the Covid-19 crisis. Revenue from operations declined to Rs 250.79 crore from Rs 398.7 crore during the year.
Read also | Opening Bell: Sensex over 500 points in early trade, Nifty near 17,046
,