RateGain Travel Technologies on Wednesday said it has fixed a price band of Rs 405-425 a share for its Rs 1,335 crore-IPO, which will open for public subscription on December 7.
The three-day initial public offering (IPO) of the travel and hospitality technology services provider will conclude on December 9. The bidding for anchor investors will open on December 6, the company announced.
The IPO comprises fresh issue of equity shares aggregating up to Rs 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 Rs 5 crore for the company’s employees who will receive those shares at a discount of Rs 40 per share to the final issue price.
At the upper end of the price band, the initial share-sale is expected to fetch Rs 1,335.73 crore.
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 acquisition of DHISCO and strategic investments, acquisitions and inorganic growth.
Also, the funds will be invested in technology innovation, artificial intelligence and other organic growth initiatives; purchase of certain capital equipment for data centers; and general corporate purposes.
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.
RateGain 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 offers 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.
Kotak Mahindra Capital Company Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited have been appointed as lead managers for the issue.
The equity shares will be listed on BSE and NSE.