IGI Logo

Salient features of the IPO:

* Rategain Travel Technologies Limited (RTTL) ) is among leading distribution technology companies for the global hospitality and travel industry.

* The company delivers hospitality and travel technology solutions through SaaS platform.

* Total issue size is Rs1,335.7 cr. IPO comprises fresh issue of Rs375 cr and offer for sale of 2.26 cr shares.

* In FY21, the company reported operating revenue of Rs251 cr and loss of Rs-28.6 cr.

Competitive Strengths

* Marquee global customers with long standing relationships

* Innovative AI driven industry relevant SaaS solutions

* Diverse and comprehensive portfolio of revenue maximization and business critical solutions

* Track record of successful acceleration post acquisitions

* Global and diverse management team with relevant technology and domain expertise

Valuation: At the higher price band of Rs425, the issue is valued at P/S of 18.1x on FY21 sales and 15.1x on FY22E annualized sales.

Below are few key observations of the issue:

* Third party travel and hospitality tech global market is forecasted to grow at a CAGR of 18% to $11.5 bn in 2025 from estimated $5.9 bn in 2021. Favorable industry scenario presents large and rapidly growing addressable market opportunity for distribution tech companies catering to global hospitality and travel industry. Industry tailwinds of increase in usages of digitalization post Covid-19 are likely to lead to a shift by hospitality and travel companies from in-house solutions to third party software and services.

* Rategain Travel Technologies Limited (RTTL) is among leading distribution technology companies and one of the largest Software as a Service (SAAS) company in the hospitality and travel industry in India. RTTL is one of the largest aggregators of data points in the world for the global hospitality and travel industry.

* The company offers travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents (OTAs), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries.

* As of Sep 30’ 2021, RTTS serves 1,462 customers including eight Global Fortune 500 companies, 25 out of the top 30 OTAs and 23 of the top 30 hotel chains. Total clients base include 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 in over 110 countries. Over 415 customers out of total clients base has been associated with the company over five years.

* RTTL delivers hospitality and travel technology solutions through SaaS platform. It leverages its big data capabilities and offers hi-tech solutions products that help hospitality travel providers acquire more guests, retain them via personalized guest experiences and seek to maximize their margins.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://choicebroking.in/disclaimer

Above views are of the author and not of the website kindly read disclaimer