Rategain Travel Technologies IPO day 1: Issue subscribed 0.41 times; retail portion booked 2.23 times

Rategain Travel Technologies Limited Initial Public Offering (IPO), which opened for subscription on Tuesday, was booked 0.41 times around 05:00 pm on the first day of the three-day offer. Against 1,73,51,146 shares on offer, the issue saw bids for 71,88,090 shares by the end of the first day.  

Retail investors, however, actively participated in the subscription as the category was booked by 2.23 times on the first day of the initial public offer.  

Similarly, the Non-Institutional Investors (NIIs) had a mute start and were subscribed 0.04 times and the Qualified Institutional Buyers (QIBs) were yet to take part in the bidding process,

While the employees' quota was subscribed 0.34 times so far on Day 1.  

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The three-day IPO of this SaaS services company will conclude on December 9, 2021. The 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.

Anchor Investors 

The company on Monday said it has raised Rs 599 crore from anchor investors ahead of its IPO (initial public offering) rollout on Tuesday. The company has decided to allocate 1,40,90,136 equity shares to 34 anchor investors at Rs 425 apiece. Government of Singapore (11.7%), Nomura (11.2%), ICICI Prudential MF (15%), Goldman Sachs Funds (10%), Nippon Life (10%), PineBridge (6.7%) and Aditya Birla Sun Life Mutual Fund (5%) among others are among the anchor investors.

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.

Earlier, Zee Business Managing Editor Anil Singhvi on Tuesday recommended to apply for this issue with medium to long term objective.  

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