The company has fixed a price band of Rs 405-425 per equity share, which includes fresh issue of shares worth Rs 375 crore in a public issue and Offer for Sale (OFS) of 22.61 million shares by investors and promoters.
At the upper end of the price band, the total issue will be Rs 1,336 crore, the company said, adding that the issue proceeds will be used to pay off debt and pay deferred consideration for one of its acquisitions, besides investing in growth and acquisitions. ,
“Given the pandemic, if I ask you or anyone what you want to come out of this, the unanimous answer is travel. It is this demand reduction coupled with rapid vaccination rates and positive global outlook, which is driving a CAGR of 26% in travel,” it said. Bhanu ChopraFounder and President of RateGain.
Chopra said the pandemic has also created an increased reliance on social media and technology to drive bookings for hospitality players, adding to the growing demand for RateGain and putting the company on a path to recover its revenue, which Last year was sunk in the near future. ,
According to the company’s red herring prospectus (RHP) filed with India’s markets regulator on November 30, RateGain reported a loss of Rs 28.6 crore in FY11, compared to a loss of Rs 20.1 crore in the previous fiscal. On the other hand, revenue declined to Rs 250.8 crore in FY2011 from Rs 398.7 crore in the previous year, due to disruptions due to the pandemic.
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However, RateGain said that in the five months ending August 2021, it generated revenue of Rs 127.3 crore, an increase of nearly 28% compared to revenue of Rs 97.8 crore in the same period last year.
Chopra said the company has yet to see any decline in its revenue due to the uncertainty created by the new Omicron strain of the virus, especially because about 65% of its revenue is driven by the US market which has been less affected by it. ,
“In terms of getting back to pre-Covid levels, we are getting very close, and I anticipate (will happen) in Q4. We have a much larger repertoire of products than we did pre-Covid, thanks to the innovations we have made and the acquisitions we have made,” said Chopra, who added that he and his family have 55 years in the company. % stake will remain. IPO.
As part of the IPO, Ratgain investors Wagner Ltd will offer 17.1 million shares, while promoters Bhanu Chopra will offer 4 million shares, Megha Chopra 13 lakh shares and Usha Chopra 0.15 million shares. The offer will include reservation of shares worth Rs 5 crore for RateGain employees at a discount of Rs 40 per share.
RateGain earns 74% of its revenue from subscriptions, with the US, which is making a strong comeback after the pandemic, driving 64% of the company’s revenue, it said. The company grew at 50% year-on-year in 2019 and 2020 before the pandemic struck, but reported a decline in FY11.