Surging for the past two days, the newly-listed company RateGain Travel Technologies shares have jumped over 20 per cent. The stocks on Wednesday gained over 10 per cent to touch a new 52-week high of Rs 402 per share on the BSE intraday.  

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The stock has spurted over 28 per cent from its 52-week low of Rs 312.25 per share hit on Monday, December 20, 2021 on the BSE. While the counter is still below its issue price of Rs 425 per share. 

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At 02:17 pm; RateGain shares are trading over 8.5 per cent higher at Rs 395.6 per share, as against a 0.50 per cent rise in the BSE Sensex. A combined 3.6 million shares changed hands on the exchanges. 

On the day of listing on December 17, 2021, the foreign portfolio investor (FPI) Goldman Sachs Funds had 7,19,727 equity shares in the company at Rs 361.71 per share on the NSE through an open market transaction. 

The scrip had made a tepid debut on the stock market. Shares of RateGain Travel Technologies were listed at Rs 364.80 per share, a discount of 14.16 per cent, against its issue price of Rs 425 per share on the BSE. The investors incurred a loss of Rs 60.20 per share on the company’s debut.  

The Rs 1,336 crore initial public offer (IPO) of RTTL had received a good response from the investors, as the issue was subscribed 17.4 times.  

The qualified institutional buyers (QIBs) portion of the issue was subscribed 8.42 times, while those of the non-institutional investors was subscribed 42.04 times and that of the retail individual investors (RIIs) was subscribed 8.08 times, the data showed. 

Santosh Meena, Head of Research at Swastika Investmart Ltd, is of the view that the timing of the IPO was not supporting its listing cause.   

The timing of RateGain IPO doesn't fit even as most of the IPOs have been witnessing a handsome return on the listing, he said.  "One, Covid is hurting its business in the near term, while worry of omicron variant is another challenge before the travel technology company, " said the analyst.