In a strategic move to bolster its financial standing, traveltech SaaS startup RateGain has initiated a qualified institutional placement (QIP) with a goal to raise fresh capital. The floor price for the QIP has been set at INR 676.66 per share, according to a regulatory filing by the company. With plans to raise INR 600 Cr, the QIP exercise is anticipated to include an INR 200 Cr greenshoe option, marking a significant step for the traveltech player.
Key Details of the QIP
- The QIP, which may lead to an 8% equity dilution, has been launched with a floor price of INR 676.66 per share.
- The company’s board approved the QIP during a meeting held on November 15.
- RateGain has not disclosed the size of the issue publicly, but industry sources suggest the fundraising target is set at INR 600 Cr, inclusive of the greenshoe option.
- The company may offer a discount of up to 5% on the floor price of the issue.
- Axis Capital and IIFL Capital will oversee the QIP, and the indicative issue price is estimated to be around INR 643 per share.
RateGain’s Financial Performance and Market Response
RateGain’s move to raise capital comes on the heels of its impressive financial performance. In the second quarter of the financial year 2023-24, the company reported a substantial increase in consolidated net profit, surging from INR 12.96 Cr in Q2 FY23 to INR 30.04 Cr in Q2 FY24. Operating revenue also witnessed a significant YoY growth of 88.4%, reaching INR 234.7 Cr in the quarter ended September 2023.
Markets have responded positively to RateGain’s performance, with the company’s share prices experiencing an over 18% appreciation in the past month. On November 15, the stock reached its 52-week high at INR 730.10 during intraday trading, closing slightly lower at INR 711.75 on the BSE.
The Future Path
While the details of how RateGain plans to utilize the proceeds from the QIP remain undisclosed, the move signals the company’s commitment to securing a robust financial position and sustaining its growth trajectory in the dynamic travel and hospitality industry.
