Rategain Travel Technologies IPO closes today: What should investors do on last day?

The Initial Public Offering of Rategain Travel Technologies Limited that opened for subscription on Decmeber 7 will close today, December 9, 2021. On the second day of opening of the issue, the IPO was subscribed 75 per cent at 5 pm, showed data with the BSE.  Against 1,73,51,146 shares on offer, the IPO received bids for 1,29,32,815 shares on Wednesday.   

Reatail quota was oversubscribed at 3.98 times, NIIs booked the issue 0.08 times and employees quota saw 72% bidding on the Day 2. 

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As the issue closes today, what should be investors doing on Thursday?  

Marwadi Shares and Finance Limited 

Well, dubbing the valuation expensive, brokerage house Marwadi Shares and Finance Limited has recommended to avoid this issue.   

"Considering FY22 Annualised EBITDA of Rs. 108.96 mn on the post-issue basis, the company is going to list at EV/EBITDA of 421.34 with the market cap of Rs.45, 367 mn. There are no listed companies in India whose business is comparable with that of the company’s business. We assign an “Avoid” rating to this IPO as valuation is expensive on an absolute basis," Marwadi Shares and Finance Limited had said in its report.  

Anil Singhvi 

Zee Business Managing Editor Anil Singhvi had recommended to apply for this issue with medium to long term objective.    

Talking about positives of the company, Anil Singhvi said the company is a leader in travel and hospitality technology and has strong growth prospects. Backing of strong promoters is another good thing about this company.   

He said only concern about this company is that it incurred loss in the last two year and corona fear may impact profitability of the company.   

This SaaS services company company has fixed a price band of Rs 405-425 per share having face value of Rs 1.    

Rategain Travel Technologies Limited is planning to raise Rs 375 crore via a fresh issue and will execute an Offer for Sale (OFS) of up to 22.6 million equity shares, according to the information available on the NSE website.   

A retail investor can apply for one lot comprising 35 equity shares and in multiples thereof. The maximum subscription for retail investor has been capped at Rs 2 lakh, while the maximum subscription amount for eligible employee is Rs 5 lakh.   

Business 

Rategain  travel  technologies Limited is among the leading distribution technology companies globally and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India. The company 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.