RateGain Travel Tech to raise ₹600 crore via QIP; floor price set at ₹676.6 per share

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RateGain Travel Technologies announced fundraising through a qualified institutions placement (QIP), for which the floor price has been set at ₹676.66 per share. The company's board considered and approved the QIP at its meeting held on Wednesday, November 15. ‘’The board approved the preliminary placement document dated November 15, 2023 together with application form in connection with the proposed qualified institutions placement of equity shares of ₹1 each (“equity shares", and such qualified institutions placement, the “issue",'' said RateGain Travel in a regulatory filing to the stock exchanges.

Also Read: RateGain sees opportunity in hospitality’s talent crunch ‘’The board approved the floor price for the Issue, being ₹676.66 per equity share (“floor price"), based on the pricing formula as prescribed under Regulation 176 of the SEBI ICDR Regulations,'' added RateGain in its filing. The leading software-as-a-service (SaaS) company also said that it will offer a discount of not more than 5 per cent on the floor price calculated for the issue. “The company may offer a discount of not more than 5 percent on the floor price so calculated for the issue.

The issue price will be determined by the company in consultation with the Book Running Lead Managers appointed in relation to the issue," said RateGain Travel Tech in a regulatory filing to the stock exchanges. According to CNBC TV-18, the company plans to raise ₹600 crore via QIP including ₹200 crore greenshoe option. This will lead to 8 per cent equity dilution through the issue.