RateGain
Mainboard₹1,336 Cr issue
-14.16%
Listing gain over issue price
Issue size
₹1,336 Cr
1 lot at cut-off
₹14,875
Lot size
35shares
Open
07 Dec 2021
Close
09 Dec 2021
Allotment
14 Dec 2021
Listing
17 Dec 2021
Listing performance
Issue price
₹425
Listed at
₹364.80
Listing-day close
₹340.50
Latest price
₹764.10
Close on 23 Oct 2026
Listing gain
-14.16%
Return since issue
+79.79%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Dec 2021 – 09 Dec 2021
- Listing date
- 17 Dec 2021
- Face value
- ₹1 per share
- Issue price
- ₹425 per share
- Lot size
- 35 shares
- Total issue size
- ₹1,336 Cr
- Market cap at offer price
- ₹4,537 Cr
- Promoter holding
- 67.29% → 56.58% pre-issue → post-issue
- ISIN
- INE0CLI01024
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- IIFL Capital Services Ltd.
- Registered office
- M-140, Greater Kailash, Part II, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,40,90,136 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 35 shares per lot, in multiples, at ₹425
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 35 | ₹14,875 |
| Retail (max) | 13 | 455 | ₹1,93,375 |
| S-HNI (min) | 14 | 490 | ₹2,08,250 |
| S-HNI (max) | 67 | 2,345 | ₹9,96,625 |
| B-HNI (min) | 68 | 2,380 | ₹10,11,500 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,40,90,136
Anchor portion
₹599 Cr
at ₹425 per share
Valuation and performance
Valuation at offer price
₹425 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹4,537 Cr |
About RateGain
RateGain Travel Technologies Limited is among the leading distribution technology companies globally and the largest SaaS company in the hospitality and travel industry in India. Originally incorporated as 'Ridaan Real Estate Private Limited' in November 2012, the company acquired the web-based solutions business of RateGain IT Solutions Private Limited through a scheme of arrangement and demerger approved by the High Court of Delhi in November 2014. The company has evolved into a platform offering interconnected products that manage the revenue creation value chain for hospitality and travel providers. It operates three main business segments: DaaS (Data as a Service), Distribution, and MarTech (Marketing Technology), serving customers globally with a focus on North America and Europe. The company generates revenue through SaaS-based contracts with hospitality and travel industry participants including hotels, airlines, OTAs, vacation rentals, car rentals, and other travel service providers.
Company Analysis
from RHPRateGain Travel Technologies is a leading global SaaS company providing distribution technology and revenue management solutions for the hospitality and travel industry, operating across hotels, airlines, OTAs, and other travel verticals.
RateGain Travel Technologies Limited is among the leading distribution technology companies globally and the largest SaaS company in the hospitality and travel industry in India. Originally incorporated as 'Ridaan Real Estate Private Limited' in November 2012, the company acquired the web-based solutions business of RateGain IT Solutions Private Limited through a scheme of arrangement and demerger approved by the High Court of Delhi in November 2014. The company has evolved into a platform offering interconnected products that manage the revenue creation value chain for hospitality and travel providers. It operates three main business segments: DaaS (Data as a Service), Distribution, and MarTech (Marketing Technology), serving customers globally with a focus on North America and Europe. The company generates revenue through SaaS-based contracts with hospitality and travel industry participants including hotels, airlines, OTAs, vacation rentals, car rentals, and other travel service providers.
Hospitality and Travel TechnologySoftware as a Service (SaaS)Distribution TechnologyData as a Service (DaaS)Marketing Technology (MarTech)
Objects of the Issue
- Repayment/prepayment of indebtedness availed by RateGain UK, one of our Subsidiaries, from Silicon Valley Bank ₹852.61 million p.24
- Payment of deferred consideration for DHISCO acquisition ₹252.00 million p.24
- Strategic investments, acquisitions and inorganic growth ₹800.00 million p.24
- Investment in technology innovation, artificial intelligence and other organic growth initiatives ₹500.00 million p.24
- Purchase of certain capital equipment for our Data Center ₹407.73 million p.24
- General corporate purposes ₹732.55 million p.24
- The document does not provide specific 'Objects of the Issue' details in this excerpt, though reference is made to See 'Objects of the Offer' on page 106 p.70
- Repayment/prepayment of indebtedness availed by RateGain UK, one of our Subsidiaries, from Silicon Valley Bank ₹852.61 million p.109
- Payment of deferred consideration for acquisition of DHISCO ₹252.00 million p.109
- Strategic investments, acquisitions and inorganic growth ₹800.00 million p.109
- Investment in technology innovation, artificial intelligence and other organic growth initiatives ₹500.00 million p.109
- Purchase of certain capital equipment for our Data Center ₹407.73 million p.109
- General corporate purposes ₹732.55 million p.109
- Not stated in this document section
Issue Structure
- Total Issue
- ₹13,357.35 million
- Fresh Issue
- ₹3,750.00 million (8,835,752 Equity Shares)
- Offer for Sale
- ₹9,607.35 million (22,605,530 Equity Shares by Selling Shareholders)
- Price Band
- ₹405.00 to ₹425.00 per Equity Share
- Lot Size
- 35 Equity Shares
- Face Value
- ₹1 per Equity Share
Business Model
RateGain operates a Software-as-a-Service (SaaS) business model, generating revenue from recurring contractual relationships with hospitality and travel industry customers. The company offers three main product lines: DaaS products for data services, Distribution products (including DHISCO and RezGain) for hotel distribution technology, and MarTech products for social media management and marketing technology in the hospitality sector. Revenue is derived from subscription-based contracts and usage-based pricing models with customers.
Business Segments
Data as a Service products providing data services to hospitality and travel customers
Distribution technology products including DHISCO and RezGain for hotel distribution and revenue management
Marketing Technology products focusing on social media management for the hospitality sector
Provides distribution solutions to travel providers including DHISCO (transaction-based distribution platform) and RezGain (subscription-based platform for OTA and travel management solutions)
Provides market intelligence and revenue management solutions for hospitality sector including products like Optima and Parity for pricing, revenue optimization and distribution management
Provides data analytics and distribution management solutions to travel and hospitality suppliers including hotels, OTAs, airlines, and car rental companies
Develops and delivers marketing and revenue optimization technology solutions for the travel and hospitality industry
Data-as-a-Service offerings
Distribution services
Marketing Technology solutions
Providing innovative solutions including revenue optimization, distribution, market intelligence, social media services and guest experience cloud platform to help clients in the hospitality and travel industry achieve their business goals
Delivers insights including competitive intelligence. Equips suppliers and demand providers with the ability to connect with data and information to increase acquisition and conversion. Offers data under two categories: Market Intelligence (provides access to pricing and availability data at scale along with analytics to present trends, opportunities and market developments) and Dynamic Pricing Recommendations (serves certain segments within the travel industry with proprietary dynamic pricing technology to help maximize revenue).
Provides mission critical distribution including availability, rates, inventory and content connectivity between leading accommodation providers and their demand partners. Distribution also enables delivery of reservations back to hotel systems to ensure smooth operations and accurate reporting by hotels.
Enhances brand experience to drive guest satisfaction, increase bookings and increase guest loyalty. Manages social media for luxury travel suppliers allowing them to be responsive to social media engagements 24x7 as well as effectively manage their social media handles and run promotional campaigns.
SWOT Analysis
Strengths
- • Leading global distribution technology company with strong SaaS position in hospitality(p.23)
- • Diverse interconnected product portfolio across travel verticals(p.23)
- • Significant international revenue base providing geographic diversification(p.38)
- • Diversified geographic revenue base with North America as largest market(p.46)
- • Growing customer base and active users across multiple geographies(p.47)
- • Multiple revenue models providing revenue stability(p.54)
- • Established global customer relationships in travel and hospitality(p.170)
- • AI-driven and innovative SaaS product portfolio(p.170)
- • Diversified revenue maximization and business-critical solutions(p.170)
- • Track record of successful post-acquisition integration and growth(p.170)
- • Experienced global and diverse management team with technology and domain expertise(p.170)
- • Leading SaaS company in hospitality and travel with marquee global customers(p.164)
- • Established customer relationships with long tenure and high retention(p.170)
- • Large aggregator of travel and hospitality data enabling AI models(p.164)
- • Diversified product portfolio across DaaS, Distribution, and MarTech segments(p.164)
- • Strong financial performance with positive cash generation and low debt(p.172)
- • Proven track record of successful acquisitions with margin expansion(p.172)
- • Market-leading position in social media management for hotels(p.168)
- • Experienced global management team across multiple continents(p.168)
- • Established governance framework with Board committees for risk management, audit, and compliance(p.215)
- • Comprehensive risk management policy covering internal, external, and sustainability risks(p.215)
- • Strong management team with experienced key personnel across geographies(p.217)
- • Robust audit and compliance mechanisms including vigil mechanism for grievances(p.212)
- • Established employee benefit and remuneration policies aligned with market standards(p.212)
- • Established geographic revenue diversification with strong US presence(p.360)
- • Integrated multi-platform offering through strategic acquisitions(p.377)
- • Strong intangible asset base from acquisitions supporting competitive position(p.354)
- • Proven ability to integrate acquisitions and achieve synergies(p.377)
Weaknesses
- • Heavy dependence on Distribution segment revenue(p.35)
- • History of net losses with uncertain path to profitability(p.45)
- • Significant revenue concentration in North America and Europe markets(p.37)
- • High customer churn and contract cancellations post-COVID(p.34)
- • Extended payment cycles indicating customer payment difficulties(p.33)
- • Non-compliance with Companies Act provisions regarding equity issuance(p.43)
- • High employee attrition, particularly among senior executives(p.48)
- • Significant contingent tax liabilities unresolved(p.56)
- • Dependence on key management personnel and promoters(p.48)
- • Significant customer contract terminations impacting revenue(p.54)
- • Recent operating losses despite revenue generation(p.74)
- • Concentrated major customer relationships creating revenue risk(p.46)
- • Elevated receivable turnover days indicating collection challenges(p.50)
- • RateGain UK subsidiary operating at a loss with declining reserves(p.111)
- • RateGain US subsidiary also reporting losses(p.111)
- • Negative return on net worth(p.121)
- • Significant outstanding indebtedness requiring prepayment(p.111)
- • High customer concentration in top 10 customers(p.170)
- • Gross Revenue Retention below 95% indicating customer churn(p.169)
- • Revenue per employee declining despite employee expansion(p.177)
- • Recent losses and negative profitability trend(p.232)
- • Significant goodwill impairment indicating acquisition integration challenges(p.253)
- • High proportion of doubtful trade receivables(p.256)
- • Substantial debt burden with borrowing covenants(p.264)
- • Dependence on foreign operations and foreign exchange exposure(p.267)
- • Operating losses and negative cash flow trajectory post-acquisition(p.385)
- • Significant amortisation burden from intangible assets reducing profitability(p.402)
- • High employee count relative to revenue generation post-acquisition(p.402)
- • Substantial debt obligations with covenant requirements(p.354)
- • Contingent earn-out liability from BCV acquisition(p.413)
- • Breach of SVB loan covenants and waived default(p.501)
- • Significant contingent tax liabilities(p.528)
- • Consolidated net losses in recent periods(p.517)
- • Significant deterioration in Adjusted EBITDA margins(p.511)
- • Litigation and regulatory proceedings involving directors and promoters(p.549)
- • Material creditor concentration(p.549)
Opportunities
- • Large and growing addressable market for travel technology(p.23)
- • Accelerating pace of innovation and adoption in travel technology(p.23)
- • Planned strategic investments and acquisitions to expand capabilities(p.43)
- • Recovery opportunity as travel and hospitality industry rebounds from COVID-19(p.32)
- • Investment in AI and machine learning to enhance product sophistication(p.39)
- • Expansion into enterprise customers with larger deal sizes(p.47)
- • Geographic expansion into new markets(p.47)
- • Growing travel and tourism industry demand post-pandemic(p.57)
- • Strategic acquisitions and inorganic growth in travel technology space(p.114)
- • Investment in AI and machine learning-driven products for evolving post-COVID travel market(p.115)
- • Significant global travel market recovery and growth post-pandemic(p.135)
- • Growing online penetration in travel and hospitality sector(p.137)
- • Expansion of data center infrastructure and cloud capabilities(p.116)
- • Large and rapidly growing TAM in travel technology(p.165)
- • COVID-19 accelerated shift to cloud and third-party SaaS solutions(p.165)
- • Expansion into adjacent verticals with limited competition(p.174)
- • Car rental segment opportunity with underpenetrated pricing solutions(p.174)
- • Vacation rental segment largely unorganized and underserved(p.175)
- • Cross-sell opportunities within existing customer base(p.174)
- • Strategic partnerships to drive growth into adjacent geographies(p.175)
- • Digital transformation and SaaS growth in hospitality and travel sectors(p.235)
- • Expansion of MarTech services revenue stream(p.267)
- • Global market penetration beyond current international presence(p.235)
- • Employee retention and motivation through ESOP schemes(p.213)
- • Recovery in hospitality and travel industry post-pandemic with US vaccination progress(p.378)
- • Continued M&A activity to consolidate fragmented market(p.378)
- • Cross-selling and upselling of integrated product suite across customer base(p.378)
- • Expansion of addressable market across hospitality ecosystem(p.377)
- • Large and growing TAM in travel technology(p.502)
- • Post-COVID digitization acceleration tailwind(p.503)
- • Cloud-based SaaS model benefits(p.503)
- • Fragmented market consolidation opportunity(p.510)
- • Intellectual property portfolio expansion(p.551)
- • Global expansion through subsidiary operations(p.551)
- • Multi-exchange listing opportunity(p.553)
Threats
- • Severe COVID-19 pandemic impact on global travel and hospitality industry(p.32)
- • Widespread revenue decline across all geographic regions due to COVID-19(p.32)
- • Broad economic and industry factors affecting hospitality and travel demand(p.31)
- • Covenant breach with Silicon Valley Bank requiring financial restructuring(p.32)
- • Foreign exchange volatility impacting consolidated results(p.43)
- • Cybersecurity and data breach risks given vast data handling(p.40)
- • Intense competitive pressures and rapidly evolving SaaS market(p.36)
- • Reliance on third-party data centers subject to service interruption risks(p.44)
- • Intense market competition from larger established players(p.50)
- • Travel industry shift toward direct distribution channels(p.53)
- • Complex regulatory environment and data privacy compliance requirements(p.49)
- • Global economic uncertainty and currency volatility affecting travel demand(p.61)
- • COVID-19 pandemic impact on travel and tourism industry(p.61)
- • Dependence on third-party service providers and data center infrastructure(p.54)
- • Intellectual property infringement claims risk(p.51)
- • Pending litigation and tax proceedings against the company(p.56)
- • Dependence on travel and hospitality industry subject to cyclical downturns and external shocks(p.133)
- • Intense competition from established technology vendors in the travel sector(p.143)
- • Concentration of customer base in hospitality and travel industries(p.115)
- • Foreign exchange and interest rate fluctuations affecting overseas subsidiaries(p.110)
- • Significant revenue concentration in North America geography(p.170)
- • COVID-19 pandemic impact on leisure travel demand(p.169)
- • Continued travel demand uncertainty(p.169)
- • Increased competition from established travel technology vendors(p.189)
- • Data privacy regulations requiring ongoing compliance investment(p.162)
- • Dependence on third-party cloud infrastructure providers(p.190)
- • Economic uncertainty and cyclicality in travel and hospitality sectors(p.232)
- • Foreign exchange volatility impacting international operations(p.267)
- • Competitive pressures in software and technology services industry(p.267)
- • Debt covenant compliance risks with lender requirements(p.264)
- • Regulatory compliance and litigation risks(p.214)
- • Intense competition with expanding competitors in SaaS hospitality market(p.340)
- • Foreign exchange volatility impacting results(p.340)
- • Dependency on travel and hospitality industry cyclicality and external shocks(p.340)
- • Risk of customer demand decline if unable to deliver satisfactory services(p.340)
- • Significant financing obligations and debt covenants constraining operational flexibility(p.410)
- • COVID-19 severe impact on travel industry(p.507)
- • Significant customer revenue decline from pandemic(p.517)
- • FX exposure from overseas revenue dependency(p.510)
- • Restrictive covenants on SVB debt facility(p.527)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bhanu Chopra | Promoter | 49.55% | — |
| Megha Chopra | Promoter | 15.87% | — |
| Bhanu Chopra | Promoter | 49.55% | 41.67% |
| Megha Chopra | Promoter | 15.87% | 13.34% |
| Wagner | Promoter Group | — | — |
| Usha Chopra | Promoter Group | 1.87% | 1.57% |
| Bhanu Chopra | Promoter | 49.55% | 15.15% (on a fully diluted basis) |
| Megha Chopra | Promoter | 15.87% | 4.85% (on a fully diluted basis) |
| Usha Chopra | Promoter | 1.82% | — |
| Bhanu Chopra | Promoter | 61.73% | — |
| Megha Chopra | Promoter | 19.76% | — |
| Bhanu Chopra | Promoter/Managing Director | — | — |
| Bhanu Chopra | Promoter | — | — |
| Megha Chopra | Promoter | — | — |
| Usha Chopra | Promoter | — | — |
| Wagner | Promoter | — | — |
Leadership
Bhanu Chopra · Chairman and Managing Director
Tanmaya Das · Chief Financial Officer
Sachin Verma · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
RateGain IPO FAQs
What is the lot size of RateGain IPO?
The minimum lot size of RateGain IPO is 35 shares. One lot costs ₹14,875 at the cut-off price.
When does RateGain IPO open and close?
RateGain IPO opened for subscription on 07 Dec 2021 and closed on 09 Dec 2021.
What is the listing date of RateGain IPO?
RateGain IPO listed on 17 Dec 2021.