RateGain IPO GMP, Allotment, Buy Or Not?|RateGain Travel Technologies IPO

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RateGain Travel Technologies Limited Introduction

RateGain Travel Technologies is amongst the leading distribution technology companies globally. It is the largest Software as a Service (SaaS) company in the hospitality and travel industry in India. It is a Noida-based company and came up with an IPO of Rs 1335.74 Crores comprising of OFS and fresh equity shares. The 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.

What are the risk factors in RateGain IPO (RateGain Travel Technologies IPO)?

1. Company is highly affected by Covid-19 pandemic, as it deals in hospitality and tourism and may affect in the future too

2. The Company deals with SaaS (Software as a Service) providers in the tourism and hospitality sector. But the market for SaaS solutions in the hospitality and travel industry is new and evolving

3. Company derives a significant portion of its revenue from limited markets namely North America and Europe

4. The Company may be adversely affected by exchange rate fluctuations as a large portion of revenue comes from foreign countries

5. Company is consistently making losses over the past two years FY-20 and FY-21 and also in the 5 months ended AUG 31, 2021

6. The Company expects increased expenses in the future

7. Company’s trade receivable turnover is increased in the last two years which means the company is exposed to credit risk

8. There are outstanding legal proceedings against the company and its promoters any adverse outcome may have a negative impact on the company

9. The Company has a high amount of contingent liabilities( ₹ 683.77 million ), which if materialized may have adverse effects on the company

10. The Company has shown fluctuating revenues over the past years

What are the competitive strengths of RateGain Travel Technologies IPO?

1. The company has a global and diverse customer base with long-standing relationships. As of September 30,
2021, They have a customer base of 1,462 customers including eight Global Fortune 500 companies

2. The company deals with AI ( Artificial Intelligence ) driven SaaS solutions

3. The company has a diverse and comprehensive portfolio: hotels, airlines, OTAs and METAs, vacation rentals, package providers, car rentals, rail, travel management companies, cruises, and ferries

4. The company has good margins and low debt

5. The company has an expert management team

What are the product/service offerings of RateGain Travel Technologies IPO?

They 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

How are the financials of RateGain Travel Technologies IPO?

1. Company has shown consistent losses over the past two years

2. Company has shown fluctuating revenue over the past three years

Financial Year EndedRevenue (₹ Crores)PAT (₹ Crores)EPS (₹)
March 2019272.7011.031.24
March 2020457.61-20.10-2.27
March 2021264.09-28.58-3.09
As of August 31, 2020105.95-7.86-0.88
As of August 31, 2021131.22-8.34-0.86
Financials Of RateGain Travel Technologies IPO

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Objects of RateGain IPO ( RateGain Travel Technologies IPO) proceeds

Offer for Sale (OFS) Rs 960.74 Crores will directly go to the selling shareholders and the company will not be benefitted

Fresh issue of Rs 375 Crores will be utilized in the below causes:

  1. Repayment/prepayment of indebtedness availed by RateGain UK, one of our 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 our Data Center; and
  6. General corporate purposes.

RateGain IPO ( RateGain Travel Technologies IPO) Open & Close date

RateGain IPO ( RateGain Travel Technologies IPO) allotment, refund & listing date

  • Finalization of Allotment: 14th December 2021
  • Initiation of Refunds: 15th December 2021
  • Date of Listing: 17th December 2021

RateGain IPO ( RateGain Travel Technologies IPO) allotment status

Allotment can be checked through the registrar website kfintech.com

RateGain IPO ( RateGain Travel Technologies IPO) details

IPO date07 Dec 2021 – 09 Dec 2021
Listing date17 Dec 2021
Price range405 – 425
Minimum order quantity35
IPO PRICE BAND

RateGain IPO ( RateGain Travel Technologies IPO) GMP today price

IPO grey market price is Rs 55 as of 7th Dec 2021 (12.94% Premium)

Is RateGain IPO overpriced (valuation)?

Calculating with its upper price band of Rs 690

Now, the EPS (earning per share) for the past three years is negative

So, it is not possible to compute the P.E ratio, and also there are no listed peers to calculate whether it is overpriced or not.

Is RateGain IPO good or bad (review)?

RateGain Travel Technologies is amongst the leading distribution technology companies globally. It is the largest Software as a Service (SaaS) company in the hospitality and travel industry in India. Although the company has shown losses over the past years and revenue with fluctuating figures, the company has a unique and evolving business idea and may grow more in the future also there are no listed peers in the stock exchange. So looking at its financials not a good idea to go for investment. But for listing gains it will be a good call as it will show good listing gains looking at its unique business.

Rating: 3 out of 5.

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