Tag: rategain travel tech

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Tata Motors to Supply 1,000 Buses to Haryana Govt – Top Indian Market Updates

FILE PHOTO: Tata Motors logos are seen at their showroom in Mumbai February 14, 2013. REUTERS/Vivek Prakash/File Photo

Here are some of the major updates that could move the markets tomorrow:

Tata Motors to supply 1,000 buses to Haryana govt

Tata Motors Ltd has secured an order for 1,000 buses from Haryana Roadways. The company will supply 52-seater fully-built diesel buses in a phased manner. The buses offer superior passenger comfort, high fuel efficiency, reliability, and low total cost of ownership. The bidding process was carried out through the state government’s e-tender process.

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Ashok Leyland delivers 150 vehicles to Tanzania Police Force

Ashok Leyland Ltd has delivered 150 trucks and buses to the Tanzania Police Force. The supplies are part of a contract signed between Ashok Leyland and the Ministry of Home Affairs, Tanzania. It is financed through a long-term soft loan extended by the Export-Import (EXIM) Bank of India. Currently, the Tanzania Police Force has a fleet of 625 Ashok Leyland vehicles.

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Kolte Patil Developers raise ₹206Cr from Marubeni Corporation for new residential project

Kolte Patil Developers Ltd has raised ₹206 crore from Japan-based Marubeni Corporation for its upcoming residential project located in Pimple Nilakh micro market, Pune. Based on the agreement, Marubeni Corporation will be entitled to 2.85 lakh sq. ft. of saleable area. The Pimple-Nilakh residential project has a total development potential of nearly 8 lakh sq. ft.

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Maruti Suzuki partners with IIT Bombay to drive innovation programs for startups

Maruti Suzuki India Ltd (MSIL) has partnered with the Indian Institute of Technology, Bombay to drive innovation programs for startups. MSIL and the Society for Innovation & Entrepreneurship (SNIE) at IIT Bombay will jointly shortlist startups for some of the complex business problems identified by the automaker. SNIE will also support outreach and incubation of potential startups who can be part of MSIL’s innovation programs.

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Govt hikes windfall tax on domestically produced crude

The Indian government has raised the windfall tax on domestically produced crude oil from ₹9,500 per tonne to ₹10,200 per tonne. [A windfall tax is a higher tax rate levied by governments against certain industries when economic conditions allow those industries to experience above-average profits.] The Centre has also reduced the special additional excise duty on the export of diesel from ₹13.00 per litre to ₹10.50 per litre. The duty on aviation turbine fuel exports remains unchanged at ₹5 a litre.

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Jewellery industry estimated to register 60% growth in Q2 FY 2023: ICRA

According to rating agency ICRA, the domestic jewellery industry is estimated to have registered a healthy growth of 60% in Q2 FY23 compared to pre-Covid levels (Q2 FY20). On a year-on-year basis, the demand recorded a contraction of 2% in Q2 due to a high base. The industry grew 70% YoY in Q2 FY22 due to pent-up demand after easing of Covid-19-related restrictions.

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Blackstone acquires majority stake in R Systems for ₹2,904 crore

Global investment fund Blackstone has acquired a majority stake in R Systems International Ltd for $359 million (~Rs 2,904 crore). R Systems is a leading provider of IT services, specializing in digital product engineering. It serves over 250 customers in the technology, media, telecom, and financial services sectors globally. Blackstone acquired the stake from founder Satinder Singh Rekhi and other current promoters.

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RateGain partners with Booking.com for AI-powered solutions

RateGain Travel Technologies Ltd’s Content AI platform has established a new and improved integration with online travel agency Booking.com. The integration will help in seamless content distribution and easier property management. The Content AI platform will save customers’ time and allow travellers to see up-to-date content and images from the accommodation on Booking.com.

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TCS expands deal with HR services company Randstad

Tata Consultancy Services (TCS) has expanded an existing deal from Dutch multinational human resource consulting firm Randstad. The IT company will modernize Randstad’s application estate on the cloud, strengthen the security posture, and accelerate its transformation journey. Randstad selected TCS as a strategic transformation partner in 2016 to digitise its sourcing solutions.

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Bharti Airtel launches 5G services at Pune airport

Bharti Airtel has deployed its Airtel 5G Plus service at Pune Lohegaon Airport, making it the first airport in Maharashtra to enjoy ultrafast 5G services. Airtel customers with 5G smartphones will enjoy high-speed 5G service on their existing data plans. With this launch, Airtel has deployed its 5G network in 11 cities. 

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ABFRL to bring French Galeries Lafayette stores to Delhi, Mumbai

Aditya Birla Fashion & Retail Ltd (ABFRL) and Galeries Lafayette have entered into a partnership to open stores of the French luxury retailer in India in the next 2-3 years. They will also open a dedicated e-commerce platform. Galeries Lafayette is known for its luxury store at Boulevard Haussmann in Paris. The flagship stores in India will bring more than 200 luxury and designer brands under one roof.

Read more here.

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Market News Top 10 News

Adani Ports Secures $3 billion Port Project in West Bengal – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Adani Ports secures $3 billion port project in West Bengal

Adani Ports & Special Economic Zone (APSEZ) will develop the Tajpur deep sea port in West Bengal at a planned investment of $3.1 billion (~₹24,775 crore). The local government expects to create 25,000 direct jobs and over 100,000 indirect jobs through this port. APSEZ has a 30% domestic market share and has been securing global contracts, including the Haifa port project in Israel and a port terminal in Sri Lanka.

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DGCA extends flight caps on SpiceJet till October 29

SpiceJet Ltd will continue to operate only 50% of approved flights till October 29, said the Directorate General of Civil Aviation (DGCA) in an order. During the period, the airline will be subject to enhanced surveillance by the DGCA. The move comes after SpiceJet flights were involved in several incidents, which the DCGA said were due to “poor internal safety oversight and inadequate maintenance actions”.

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Govt approves ₹19,500-crore PLI scheme for manufacturing solar PV modules

The Union Cabinet approved a ₹19,500 crore Production-Linked Incentive (PLI) scheme on the ‘National Programme on High-Efficiency Solar PV Modules’.  The scheme aims to bring direct investment of ~₹94,000 crore and lead to direct employment of about 1,95,000 people. It will enable the installation of ~65,000 megawatts (MW) per annum manufacturing capacity of fully and partially integrated solar photovoltaic (PV) modules.

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Tata Group evaluating options to consolidate AirAsia India, Vistara under Air India: Report

According to an ET Now report, the Tata Group is evaluating options to consolidate AirAsia India and Vistara under Air India to bring operational synergies among the three airlines under its umbrella. Air India CEO & MD Campbell Wilson has set up a team to will look into the synergy between Air India Express and AirAsia India and also between Air India and Vistara and how to achieve the merger. He has reportedly asked the team to submit its plan within 1 year.

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KPIT Tech acquires 4 Technica Group companies for ₹640 crore

KPIT Technologies Ltd’s board has approved the acquisition of four Technica Group companies for ₹640 crore. The target entities specialise in production-ready system prototyping (combination of network system architecture, hardware prototyping, integration), automotive ethernet products, and tools for validation. The deal is expected to be closed by the end of October 2022.

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Reliance Retail in talks for rights of beauty retailer Sephora: Report

Economic Times reported that Reliance Retail is in advanced talks to acquire the rights for beauty retailer Sephora in India. Sephora’s operations will transfer from Arvind Fashions Ltd to Reliance Retail if an agreement is reached. Owned by French luxury goods group LVMH, Sephora has 25 stores in 13 cities across India. It has brands in categories such as cosmetics, fragrances, skincare, makeup, and hair care.

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Sonder Holdings selects RateGain to strengthen its presence in global distribution system

US-based hospitality company Sonder Holdings Inc. has selected RateGain Travel Technologies to strengthen its presence on the Global Distribution System (GDS). Sonder has connected with RateGain’s Connectivity Switch Platform and introduced its own dedicated chain code, SS. This makes it faster and easier for agents to search for Sonder’s availability on travel reservation systems.

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KEC International wins new orders worth ₹1,123 crore

KEC International Ltd has secured new orders worth ₹1,123 crore across its various businesses in India. Its Transmission & Distribution (T&D) business has received orders for building substations in India. KEC’s railways business has secured an order for the construction of bridges and associated works for railway lines. Meanwhile, its civil business bagged an order for infrastructure works in the hydrocarbon segment.

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Wipro fires 300 employees found moonlighting with rival company

IT major Wipro Ltd terminated the services of 300 staff members who it discovered were working for its competitors while still being on the company’s payroll (also called moonlighting). Chairman Rishad Premji asserted that he stands by his recent comments on moonlighting being a complete violation of integrity “in its deepest form”.

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Market News Top 10 News

Tata Power Secures Solar Project Worth Rs 1,731 crore – Top Indian Market News

Tata Power secures solar project worth Rs 1,731 crore

Tata Power Solar Systems (TPSS) has secured an order worth Rs 1,731 crore to build a 300 megawatt (MW) solar project for NHPC Ltd. The project, which will be developed in Rajasthan, is expected to generate ~750 million units (MUs) annually. It will be completed within 18 months. Tata Power’s pending order book has now reached Rs 13,500 crore. Its total utility-scale solar project portfolio has touched 9.7-gigawatt power (GWp).

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Ami Organics Q4 Results: Net profit rises 38% YoY to Rs 21 crore

Ami Organics Ltd reported a 38.18% YoY increase in consolidated net profit to Rs 21.28 crore for the quarter ended March (Q4 FY22). Net profit rose 9.3% when compared to the previous quarter. Its revenue from operations grew 54.54% YoY to Rs 143.54 crore during the same period. Ami Organics’ board has declared a final dividend of Rs 3 per share.

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SJVN to develop 490 MW Arun-4 hydel power project in Nepal

SJVN Limited will develop a hydro power (Arun-4) worth Rs 4,900 crore in Nepal. The project will be established as a joint venture between SJVN and Nepal Electricity Authority (NEA). It will generate around 2,100 million units (MUs) of energy per annum. This will be the third mega project to be constructed by SJVN in Nepal. The company aims to have 5,000 MW projects in Nepal by 2030.

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Bharat Forge Q4 Results: Net profit rises 9% YoY to Rs 232 crore

Bharat Forge Ltd reported a 9% YoY increase in consolidated net profit to Rs 231.86 crore for the quarter ended March (Q4 FY22). Its revenue from operations grew 71.5% YoY to Rs 3,573.09 crore during the same period. Total expenses stood at Rs 3,295.61 crore, up 79% YoY. The company’s board has declared a final dividend of Rs 5.5 per share.

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BEL to manufacture battery packs for Triton electric trucks

The Pune unit of Bharat Electronics Ltd (BEL) will manufacture lithium-ion battery packs for the electric trucks of US-based Triton. Triton recently signed a pact with the Gujarat State Government for setting up an EV truck manufacturing hub, with a commitment to invest around Rs 10,800 crore over five years. BEL is among the five organisations that will invest in this EV manufacturing hub at Bhuj, Gujarat.

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RateGain Travel Tech Q4 Results: Net profit at Rs 11.61 crore

RateGain Travel Technologies Ltd (RTTL) reported a consolidated net profit of Rs 11.61 crore for the quarter ended March (Q4 FY22). It had posted a net loss of Rs 5.83 crore in the corresponding quarter last year (Q4 FY21). Its total income rose 45.2% YoY to Rs 113.98 crore during the same period. RTTL is one of the largest Software-as-a-Service (SaaS) companies in India’s hospitality and travel industry.

Hero MotoCorp expects two-wheeler industry to see double-digit growth in FY23

Hero MotoCorp expects the two-wheeler industry to bounce back in the current financial year (FY23), with economic activity picking up and high grain prices augmenting rural incomes. With macroeconomic indicators looking positive, the company expects the industry to grow in double digits in FY23. Better finance options could also boost sales growth going ahead. Hero MotoCorp will unveil its first electric product on July 1, 2022.

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Raymond Q4 Results: Net profit jumps 366% YoY to Rs 263 crore

Raymond Ltd reported a 366% YoY jump in consolidated net profit to Rs 263.31 crore for the quarter ended March (Q4 FY22). Net profit rose 162.57% when compared to the previous quarter. Its revenue from operations grew 43% YoY (or 7% QoQ) to Rs 1,958 crore during the same period. EBITDA stood at Rs 284 crore, up 84% YoY. Raymond’s board has declared a dividend of Rs 3 per share.

Adani Group to become India’s second-largest cement maker with Holcim deal

Adani Group has signed a binding agreement to acquire a controlling stake in Holcim AG’s cement businesses in India for $10.5 billion (~Rs 81,361 crore). The group will acquire Holcim’s 63.19% stake in Ambuja Cements Ltd and its subsidiary ACC Ltd. With this acquisition, Adani will become the second-largest cement manufacturer in India, with a capacity of 70 metric tonnes per annum.

Read more here.

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Editorial

Rategain Travel Technologies Ltd IPO: All You Need to Know

The IPO frenzy continues on Dalal Street, with four public issues opening for subscription this week! Rategain Travel Technologies Ltd, a travel technology firm, will launch its three-day IPO tomorrow— December 7. In this article, we take a closer look into the company and its IPO.

Company Profile – Rategain Travel Technologies Ltd

Rategain Travel Technologies Ltd (RTTL) is the largest Software-as-a-Service (SaaS) company in the hospitality and travel industry in India. It offers solutions across a wide spectrum of verticals, including hotels, airlines, online travel agents (OTAs), vacation rentals, package providers, car rentals, rail, travel management companies, and cruises. 

The company provides a suite of interconnected products that manage the revenue creation value chain for customers by leveraging big-data capabilities and integration with other tech platforms. Thus, RTTL helps hospitality and travel providers to acquire more guests, retain them via personalized experiences, and ultimately maximize their margins. 

Business Verticals:

The company delivers solutions through three business categories: 

  • Data as a Service (DaaS) – Provides information such as market dynamic pricing and analytics. This segment tracks over 5.83 billion price points from various sources and issues data on pricing, rating, ranking, availability, and room descriptions.
  • Distribution – Provides information on availability, rates, and inventory to different hotel aggregators or agents.
  • Marketing Technology – Manages social media engagements and promotional campaigns. 

RTTL served 1,462 customers as of September 30, 2021 (Q2 FY22), including eight Fortune Global 500 companies. Its prominent clients are Six Continents Hotels Inc., Kessler Collection, Lemon Tree Hotels Ltd, and Oyo Hotels and Homes Pvt Ltd. The company services its customers in multiple geographies and local go-to-market teams. Moreover, they have offices in six countries.

RateGain has grown its customer base over the years through well-developed sales and customer success. It focuses on marketing strategies/functions that generate and convert quality sales leads. The company has expanded its product portfolio to include artificial intelligence (AI) and machine learning capabilities. As a result, they are now one of the largest aggregators of data points for the hospitality and travel industry in the world. 

About the IPO

Rategain Travel Technologies’ public issue opens on December 7 and closes on December 9. The company has fixed Rs 405-425 per share as the price band for the IPO.

The fresh issue of shares (of the face value of Rs 1 each) aggregates to Rs 375 crore. The IPO also includes an offer for sale (OFS) of up to 2.26 crore equity shares by promoters and early investors. Individual investors can bid for a minimum of 35 equity shares (1 lot) and in multiples of 35 shares thereafter. You will need a minimum of Rs 14,875 (at the cut-off price) to apply for this IPO. The maximum number of shares that can be applied by a retail investor is 455 equity shares (13 lots).

RTTL will utilise the net proceeds from the IPO for the following purposes:

  • Repayment and/or prepayment of debt availed by Rategain UK – Rs 85.26 crore
  • Payment of deferred consideration for the acquisition of DHISCO (a hotel distribution service) – Rs 25.2 crore
  • Strategic investments, acquisitions, and to boost inorganic growth – Rs 80 crore
  • To make investments in technology innovation, artificial intelligence, and other organic growth initiatives – Rs 50 crore
  • Purchase of capital equipment for the company’s data center – Rs 40.77 crore
  • General corporate purposes. 

Financial Performance

RTTL has posted losses over the past two financial years. In FY20, the company registered total revenue of Rs 457.6 crore and incurred a loss of Rs 20.1 crore. Its revenue for FY21 stood at Rs 264.1 crore, and the net loss widened to Rs 28.6 crore. The negative earnings can be attributed to the adverse impact of the Covid-19 pandemic on its operations. However, their gross margins have been above 76% during this period. EBITDA fell 78.5% YoY to Rs 6.15 crore in FY21.

The company added 272 active customers from 110 countries during the period from FY19 to FY21.

Risk Factors

  • Factors such as Covid induced lockdowns and movement restrictions can have an adverse impact on RTTL’s business and financial performance.
  • RateGain’s customers are typically not obliged to renew, upgrade, or expand their contracts with the company. Thus, customer retention rates could be low.
  • The inability to attract new customers or retain existing customers in a cost-effective manner could severely affect the company.
  • The market for Software as a Service (SaaS) solutions in the hospitality and travel industry is new and yet to evolve. If the market develops slowly than anticipated or declines, RateGain’s business could be adversely affected.
  • RTTL derives a significant portion of its revenue (~82%) from a limited number of markets (mainly North America and Europe). Any adverse developments in these markets could harm the company’s overall operations.
  • The company has a history of net losses and anticipates increased expenses in the future.

IPO Details in a Nutshell

The book-running lead managers to the public issue are IIFL Securities, Kotak Mahindra Capital, and Nomura Financial Advisory & Securities (India). Rategain Travel Technologies had filed the Red Herring Prospectus (RHP) for its IPO on November 28. You can read it here. Out of the total offer, 75% is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.

Conclusion

RateGain’s vision is to become the leading revenue maximization platform for the hospitality and travel industry. Its integrated technology platform, powered by artificial intelligence (AI), enables customers to increase their revenue through customer acquisition, retention, and wallet share expansion. As per reports, third-party travel and hospitality technology is estimated to be a $5.91 billion market in 2021. The market is expected to grow at a CAGR of 18% to reach $11.47 billion by 2025. RTTL could greatly benefit from the growth in this sector due to its first-mover advantage.

However, the company is exclusively focused on the hospitality and travel industry, which is highly sensitive to economic conditions. The general sentiments in this industry continue to be weak due to the Covid-19 pandemic. Analysts have also red-flagged the aggressive valuation of the issue.

RTTL’s IPO shares are trading at a premium of Rs 85-100 in the grey market. Before applying to this IPO, wait to see if the portion reserved for institutional investors gets oversubscribed. As always, consider the risks associated with the company and come to your own conclusion.

What are your opinions on this IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.