RateGain Travel files draft papers with Sebi to raise funds via IPO

RateGain Travel Technologies, a travel and hospitality technology services provider – has filed draft papers with markets regulator Sebi to raise funds through an initial share sale.

The initial public offer (IPO) comprises a fresh issue of equity shares, aggregating up to 400 crore and an offer for sale (OFS) of up to 2.26 crore shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).

The OFS comprises a sale of 1.71 crore equity shares by Wagner Limited, up to 40.44 lakh shares by Bhanu Chopra and up to 12.94 lakh shares by Megha Chopra and up to 1.52 lakh shares by Usha Chopra.

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.

Also, the funds will be invested in technology innovation, artificial intelligence and other organic growth initiatives; the purchase of certain capital equipment for the data centre and general corporate purposes.

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, IIFL Securities and Nomura Financial Advisory and Securities (India) have been appointed as lead managers to the issue. The equity shares will be listed on BSE and NSE.