RateGain Travel Technologies Limited continued to receive muted response on the second day of its three-day initial public offering on Wednesday.
The IPO was subscribed 0.75 times till 5 pm. Overall, it received 12.93 million bids against an offer of 17.35 million shares, according to stock exchange data.
Retail investors bid for 3.98 times the shares reserved for them. Non-institutional investors placed bids for 0.08 times their quota, while institutional investors are yet to place orders for the issue.
RateGain is one of the leading distribution technology companies globally and the largest software-as-a-service company in the hospitality and travel industry in India.
The company’s profitability has not been encouraging over the years due to acquisitions of loss making entities and high depreciation (loss of goodwill).
Due to the pandemic, its revenue declined to Rs 250 crore in FY 2011, from a high of Rs. 400 crore in FY20, while the adjusted EBITDA margin increased to 9.4% in FY21 from 8% in FY20.
Meanwhile, the retail segment of Shriram Properties Ltd saw a bumper demand on the first day of the IPO. Overall, the IPO was subscribed 0.93 times.
Retail investors, whose exposure limit cannot be exceeded 2 lakh in an IPO, applied for 5.07 times the shares on offer.
High net worth individuals in the non-institutional category attracted just 0.04 times of the shares reserved for it. Stock exchange data shows that a range of institutional investors are yet to apply on the issue.
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