Multibagger small-cap stock announces QIP to raise ₹600 crore

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Qualified Institutional Placements (QIPs) route. Union Bank of India. Bajaj Finance.

IDFC First Bank. Suzlon Energy. Adani Green Energy.

The list goes on… companies like Ramkrishna Forgings, Texmaco Rail, and Jupiter Wagons (all from the capital goods sector) have also committed to raising funds via this avenue. Adding to this list is a smallcap IT firm which recently launched its QIP. Travel tech firm Rategain Travel Technologies launched its QIP on 15 November 2023 to raise ₹6 billion (bn).

According to reports, the company will raise ₹6 bn via QIP while keeping the greenshoe option open for an oversubscription of ₹2 bn. This will lead to an 8% equity dilution through the QIP route. The company had fixed the floor price at ₹676.66 per share, reflecting a 5% downside from 15 November’s closing price.

Rategain Travel Technologies is the largest SAAS (software as a service) player in travel and hospitality segment in India. It helps the clients like hotels, airlines, online travel aggregators like Expedia to acquire guests, service them and drive engagement with them to command better wallet share through its AI powered tech platform. It helps the end clients with operational and management aspects, along with analysing travel-based data in a way that helps its clients increase engagement with the customers along with wallet share.

For example, if clients have certain preferences, the company might make use of this data to help hotels service them better and drive engagement and wallet share. The company operates in three divisions. First is Data as a Service, which comprises around 29% of its revenue.