RateGain Travel Technologies IPO: The IPO of RateGain Travel Technologies, one of the world’s largest distribution technology companies, is about to open in the next two days. You will be able to invest money between 7-9 November in the IPO of Rs 1336 crore. Under this IPO, new shares worth Rs 375 crore will be issued. Regarding investing in this, market experts believe that it can give great returns to investors in the long term. RateGain does not have any listed peer and its valuation is also discounted. Apart from this, due to rapid digitization, there may be high growth of rategain. In such a situation, analysts have given subscribe rating to this IPO.
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Market expert gave subscribe rating
- There are no listed peers for rategain comparison but in terms of valuation it is at a 50% discount as compared to unicorns like Zomato and Paytm.
- According to brokerage firm Reliance Securities, this IPO is priced at 18.1 times the FY21 price to sales and 15.1 times the FY 2022 estimated price to sales, which is 27.3 times against Paytm and 31.7 times against Zomato at the current price. is on discount.
- Due to Corona, the process of connecting customers by hospitality and travel companies has become increasingly digital and due to this, the growth of third party companies like software and service models can be seen accelerating.
- RateGain is one of the largest distribution technology companies globally. Along with this, it is the largest Software as a Service Company (SaaS) in the hospitality and travel industry in India.
- Third party travel and hospitality technology is expected to grow at a CAGR of 10 per cent (Compound Annual Growth Rate) in the next five years, which means that there is a possibility of rapid growth of rategain in the long term.
- Given the high growth potential, low competition and better valuations, analysts at Reliance Securities recommend investors to invest in this IPO for the long term.
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RateGain Travel Technologies IPO Details
- Investors can invest in Rategain’s IPO of Rs 1336 crore between November 7-9.
- Under this IPO, new shares worth Rs 375 crore will be issued, while about 2.26 crore equity shares will be sold under the offer for sale (OFS).
- Under this IPO, a price band of Rs 405-425 per share has been fixed for shares with a face value of Rs 1.
- A lot of 35 shares has been fixed for this IPO i.e. according to the upper price of the price band, investors will have to invest at least Rs 17875.
- Under the IPO, the employees of the company can buy shares at a discount of Rs 40.
- 75 per cent of the issue has been reserved for Qualified Institutional Investors (QIBs), 15 per cent for Non-Institutional Investors (NIIs) and 10 per cent for retail investors.
- The allotment of its shares can be fixed on December 14, while the day for listing has been fixed on December 17.
- 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. At the same time, this fund will also be used for the acquisition of DHISCO and for strategic investments, acquisitions and inorganic growth. In addition, the funds will also be used for technology innovation, artificial intelligence and other organic growth initiatives, data centers and purchase of certain capital equipment for general corporate purposes.
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Company related details
- It is one of the largest distribution technology companies in the world. Apart from this, it is the largest Software as a Service Company (SaaS) in the hospitality and travel industry in India.
- The company provides hospitality and travel related services including hotels, airlines, online travel agents (OTAs), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries.
- Talking about the financial position, the net profit (Profit After Tax) of Rategain has increased continuously in the last three financial years, in the financial year 2019, the company had a profit of Rs 11.3 crore, which increased to Rs 20.1 crore in the next financial year and In the last financial year 2021, the company had a net profit of Rs 28.6 crore.
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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