According to a source on Wednesday, RateGain Travel Technologies Ltd, a global supplier of AI-powered SaaS solutions for the hospitality and travel industries, is planning to make a Rs 600-crore Qualified Institutional Placement (QIP).
According to CNBC TV18, the QIP will include a base issue of Rs 400 crore and a greenshoe option of Rs 200 crore.
RateGain stated in a stock exchange filing on Wednesday that the QIP’s floor price will be Rs 676.66 per share of face value of Rs 1 if computed at up to 5% discount as per SEBI requirements.
“The Board approved the Issue’s floor price of Rs 676.66 per Equity Share (“floor price”), based on the pricing formula prescribed under Regulation 176 of the SEBI ICDR Regulations,” RateGain stated in a stock exchange filing.
According to the article, the indicated QIP price is Rs 643 per share, representing an almost 10% discount to the previous day’s closing price, and the Rs 600-crore offering implies an 8% equity loss. The company’s market capitalisation is Rs 7,700 crore. According to reports, the bankers are Axis Capital and IIFL.
RateGain
“The Issue price will be determined by the Company in consultation with the Book Running Lead Managers appointed in relation to the Issue,” RateGain stated in a regulatory filing. QIP is a method of raising money for publicly traded firms by selling stocks or other equity convertible securities to qualified institutional purchasers.
RateGain’s stock closed nearly 1% down on the BSE on Wednesday, at Rs 711.75.
Due to robust travel demand, the traveltech SaaS startup’s consolidated earnings after tax increased 132% to Rs 30 crore in the quarter ending September 30, 2023, up from Rs 13 crore the previous year.
Its revenue increased 88% to Rs 235 crore, while its operating margins increased to 20% in Q2FY24 from 14% in Q2FY23.
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