Rategain Travel Technologies IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 13th December 2022 - 05:52 pm

The Rs.1,335.74 crore IPO of Rategain Travel Technologies, consisting of a fresh issue of Rs.375 crore and an offer for sale (OFS) of Rs.960.74 crore, had seen tepid response on Day-1 and Day-2 of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Rategain Travel Technologies IPO was subscribed just 17.41X overall, with strong demand coming only from the HNI segment followed by the QIB and the retail segment. The issue has closed for subscription on Thursday, 09th December.

As of close of 09th December, out of the 173.51 lakh shares on offer in the IPO, Rategain Travel Technologies saw bids for 3,020.05 lakh shares. This implies an overall subscription of 17.41X. The granular break-up of subscriptions was dominated by the HNI / NII investors.

The QIB response and the retail response was also robust. On the last day of bidding, the NII bids and the QIB bids built up substantial momentum to give a reasonable close.

Rategain Travel Technologies IPO Subscription Day 3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	8.42 Times
Non Institutional Investors (NII)	42.04 Times
Retail Individuals	8.08 Times
Employees	1.37 Times
Overall	17.41 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 06th December, Rategain Travel Technologies did an anchor placement of 1,40,90,136 shares at the upper end of the price band of Rs.425 to 34 anchor investors raising Rs.598.83 crore, representing 44.83% of the total issue size.

The list of QIB anchors included a number of marquee international names like Government of Singapore, Monetary Authority of Singapore, Nomura Fund, Ashoka India Fund, Goldman Sachs, Pinebridge and Tantallon. Domestic investors in the anchor placement included ICICI Pru MF, Axis Mutual Fund, Aditya Birla Sun Life MF, Sundaram Mutual Fund, SBI Life Insurance, ICICI Pru Life Insurance and HSBC India Mutual Fund.

The QIB portion (net of anchor allocation as explained above) has a quota of 93.93 lakh shares of which it has got bids for 790.85 lakh shares at the close of Day-3, implying 8.42X subscription for QIBs at the close of Day-3. QIB bids entirely got bunched on the last day but the solid response in the anchor placement had hinted at institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 42.04X (getting applications for 1,974.52 lakh shares against the quota of 46.97 lakh shares). This is a relatively strong response at the close of Day-3 and this segment almost saw the entire response bunched on the last day. Typically, the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a healthier 8.08X at the close of Day-3, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is just 10% in this IPO.

For retail investors; out of the 31.31 lakh shares on offer, valid bids were received for 252.90 lakh shares, which included bids for 193.10 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.405-Rs.425) and has closed for subscription on 09th December 2021.

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