RateGain Travel Technologies’ initial public offering or IPO retail portion was subscribed more than 100 per cent within a few hours of opening on Tuesday. RateGain IPO was subscribed nearly 0.20 times and it received 3.58 million bids against the offer of 17.35 million shares, according to stock exchange data.
Retail investors placed 3.57 million bids against the 3.13 million shares on offer. The portion reserved for non-institutional investors and qualified institutional bidders has not been applied for yet.
About 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors can bid for a minimum of 35 equity shares and in multiples thereof.
The RateGain Travel Technologies IPO will close for subscription on Thursday, December 9.
On Monday, RateGain Travel Technologies said it has raised ₹599 crore from anchor investors ahead of its IPO.
According to a circular uploaded on BSE website, the travel and hospitality technology services provider has decided to allocate 14,090,136 equity shares to 34 anchor investors at ₹425 apiece, valuing the transaction size to ₹598.83 crore.
Government of Singapore, Monetary Authority of Singapore, Nomura, Goldman Sachs Funds, Aditya Birla Sun Life Mutual Fund (MF), ICICI Prudential MF, Sundaram MF, Axis MF, SBI Life Insurance Company, ICICI Prudential Life Insurance Company and BNP Paribas Arbitrage are among the anchor investors.
RateGain Travel Technologies IPO comprises a fresh issue of equity shares aggregating up to 375 crore and an offer for sale (OFS) of up to 2.26 crore equity shares by promoters and existing shareholders.
The OFS comprises sale of 1.71 crore equity shares by Wagner Limited, up to 40.44 lakh equity shares by Bhanu Chopra and up to 12.94 lakh equity shares by Megha Chopra and up to 1.52 lakh equity shares by Usha Chopra.
The offer includes a reservation of shares worth ₹5 crore for the company’s employees who will receive those shares at a discount of ₹40 per share to the final issue price.
RateGain Travel Technologies has said proceeds from the fresh issue will be used for payment of debt availed by RateGain UK, one of the subsidiaries, from Silicon Valley Bank; payment of deferred consideration for the acquisition of DHISCO and strategic investments, acquisitions and inorganic growth.
The funds will also be invested in technology innovation, artificial intelligence and other organic growth initiatives; purchase of certain capital equipment for data centre and general corporate purposes.
Kotak Mahindra Capital Company Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited have been appointed as lead managers to the issue.
The equity shares will be listed on BSE and NSE.
(With agency inputs)
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