RateGain Travel Technologies will open for public subscription on December 7. The company has fixed a price band of Rs 405-425 a share for its Rs 1,335 crore-IPO.
The three-day initial public offering (IPO) of the travel and hospitality technology services provider will conclude on December 9.
According to market observers, RateGain share premium declined to Rs 85 in the grey market today after commanding GMP of over Rs 100 in the past few days. The company plans to list on 17 December on the exchanges, media reports said.
IPO
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.
Shares
At the upper end of the price band, the initial share-sale is expected to fetch Rs 1,335.73 crore.`
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.
Proceed from the fresh issue
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.
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.
(With inputs from PTI)
