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|Issue Size- 31,405,530 shares||Issue Open/Close – Dec 07 /Dec 09, 2021|
|Price Band (Rs) 400- 425||Issue Size- Rs 13.35 bn|
|Face Value (Re.) 1||Lot Size (shares) 35|
Rategain Travel Technology Limited (RTTL) is among the leading distribution technology companies globally and is the largest Software as a Service (SaaS) company in the hospitality and travel industry in India. They offer travel and hospitality solutions across travel verticals including hotels, airlines, online travel agents meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries. They offer inter-connected products that manage revenue creation value chain for customers by leveraging the big-data capabilities and integration with other technology platforms helping hospitality and travel providers acquire guests, retain them and seek to maximize their margins. As per the Phocuswright Report, the total addressable market for third-party travel industry technology excluding hardware was US $5.91 billion in 2021. These numbers will increase over the next few years because of advances in technology as well as from COVID-19 impacts.
As of September 30, 2021, RTTL served 1,462 customers including eight Global Fortune 500 companies. Its customers include Six Continents Hotels, Inc., an InterContinental Hotels Group Company, Kessler Collection, a luxury hotel chain, Lemon Tree Hotels Limited and Oyo Hotels and Homes Private Limited. It also counts 1,220 large and mid-size hotel chains, 110 travel partners including airlines, car rental companies and large cruise companies and over 132 distribution partners including OTAs such as GroupOn and distribution companies such as Sabre GLBL Inc., in over 110 countries as its customers, as of September 30, 2021.
RTTL is one of the largest aggregators of data points in the world for the hospitality and travel industry. RTTL will emerge as the niche player with its widened product portfolio. With the opening of economy augurs well for the company, though the on-going new variant scare will keep sentiments under check. At the issue price bands, it seems to be aggressively priced based on the current financial parameters. Due to losses, the PE cannot be ascertained. However, considering future prospects in mind, risk takers can apply.