RateGain IPO 2021: Price Band, Dates, OFS Details

What RateGain announced and why it mattered

RateGain Travel Technologies, a travel and hospitality technology services provider, announced its initial public offering (IPO) with the intention to list on both BSE and NSE. The company described the move as a step that would make it a listed Software as a Service (SaaS) company focused on the travel and hospitality industry in India. The IPO was scheduled to open for subscription on December 7, 2021, and close on December 9, 2021.

In its communication, the company said the price band for the offer was fixed at Rs 405 to Rs 425 per equity share (face value Re 1). Bids were to be made for a minimum of 35 equity shares and in multiples of 35 equity shares thereafter. The listing plan and the pricing range were the key reference points for investors tracking primary market activity in the travel technology segment.

IPO structure: fresh issue plus offer for sale

The IPO included a fresh issue of equity shares and an offer for sale (OFS) by promoters and existing shareholders. One section of the provided material described the fresh issue as aggregating up to Rs 375 crore and the OFS as up to 2.26 crore equity shares. Another section, referring to the draft red herring prospectus (DRHP), described the fresh issue as up to Rs 400 crore (also stated as Rs 4,000 million) and the OFS as up to 22,605,530 equity shares.

The OFS composition was detailed by shareholder names and maximum shares offered. Wagner Limited was to sell 1.71 crore equity shares. Bhanu Chopra was to sell up to 40.44 lakh shares, Megha Chopra up to 12.94 lakh shares, and Usha Chopra up to 1.52 lakh shares. These figures were presented as part of the OFS disclosed in the offer documentation summaries.

Price band, bid lot, and expected issue proceeds

The price band was stated at Rs 405 to Rs 425 per share. With this range, the overall issue size was also described in multiple places. In a virtual press conference context, the total issue was referred to as “around Rs 1,300 crore,” along with a stated use of funds for debt repayment, deferred acquisition consideration, and investments in technology growth and acquisitions.

Separately, at the upper end of the price band, the initial share sale was expected to fetch Rs 1,335.73 crore. This figure was linked directly to the upper band pricing and the issue size disclosed in the related report.

Reservation for employees and investor allocation

The offer included a reservation of shares worth Rs 5 crore for employees, with an employee discount of Rs 40 per share to the final issue price. The investor category allocation was also specified. Qualified institutional buyers (QIBs) were allocated 75% of the issue size, non-institutional investors 15%, and retail investors 10%.

These allocations and the employee reservation were key terms that shaped how the issue would be distributed across investor types, as described in the provided information.

How the company said it would use the fresh issue proceeds

The draft disclosures outlined multiple end uses for the net proceeds of the fresh issue. These included repayment or prepayment of indebtedness availed by RateGain UK from Silicon Valley Bank, payment of deferred consideration for the acquisition of DHISCO, strategic investments and acquisitions for inorganic growth, and investment in technology innovation including artificial intelligence and other organic growth initiatives.

The proceeds were also proposed to be used for the purchase of certain capital equipment for a data centre and for general corporate purposes. These purposes were explicitly listed as the stated objects of the issue in the provided text.

Timeline: key dates from open to listing

The IPO schedule provided specific dates from the issue period through listing. The issue was to run from December 7 to December 9, 2021. The tentative date of allotment was stated as December 14, 2021, with refunds to initiate on December 15 and shares to be credited on December 16. The date of listing was listed as December 17, 2021.

The schedule also mentioned a mandate end date of December 25, 2021. These dates were presented as part of the IPO timeline for investors tracking when applications, allotments, and listing would occur.

Where to check allotment status

The material stated that investors could check the allotment status on the website of the Registrar and Transfer Agent. It also mentioned that allotment status could be checked on the NSE website. The allotment date referenced in the schedule and the allotment-status note was December 14, 2021.

Stock exchange details and issue managers

The company’s equity shares were to be listed on BSE and NSE. The provided identifiers included BSE: 543417, NSE: RATEGAINEQ, and ISIN: INE0CLI01024. The sector tag in the provided block was General.

Kotak Mahindra Capital Company Limited, IIFL Securities Limited, and Nomura Financial Advisory and Securities (India) Private Limited were named as the book running lead managers to the issue. These entities were repeatedly cited as the appointed lead managers.

Summary table: issue terms and key disclosures

IPO schedule table

Market impact and why the terms stood out

The disclosed structure combined a fresh issue and an OFS by multiple shareholders, including Wagner Limited and members of the Chopra family. In practical terms, the fresh issue component was positioned to fund specific corporate uses such as debt repayment, deferred consideration for an acquisition, and technology investments including artificial intelligence initiatives. The OFS component represented a sale of existing shares by promoters and other shareholders, with share counts specified for each selling party.

The pricing range and the expected proceeds at the upper price band provided a clear benchmark for the overall fundraising scale. The allocation split across QIBs, non-institutional investors, and retail investors outlined how the book would be built across investor categories, while the employee reservation and discount described how employees were included in the offer.

Conclusion

RateGain’s IPO was scheduled for December 7 to 9, 2021, with a Rs 405 to Rs 425 price band and listing planned on BSE and NSE. The timeline pointed to allotment finalisation on December 14 and listing on December 17, with allotment status to be available through the registrar and the NSE website. The offer combined a fresh issue and an OFS with disclosed seller-wise share quantities, while the company listed specific purposes for the fresh issue proceeds and named Kotak Mahindra Capital, IIFL Securities, and Nomura as lead managers.