RateGain IPO to list on bourses today; market expert says expect modest listing - Here is why

RateGain IPO is all set to be listed on the bourses on Friday, December 17, 2021, as per discount broker Upstox. The Initial Public Offering (IPO) was subscribed 17.41 times on the last day on December 9, 2021. Among the leading distribution technology companies globally and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India, the public offer of RateGain surged on the final day after being subscribed only 75 per cent of the total quota.  

On the last day, the IPO received bids for 30,20,04,780 shares as against reserved quota of 1,73,51,146 shares, as per NSE.  

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Ahead of the listing, market expert is of the view that the IPO may see a moderate listing as the company has incurred losses in the last two years due to Covid 19.  

As the largest SaaS provider in the travel and hospitality industry in India, RateGain Travel Technologies has a promising future, says Aayush Agrawal, Sr. Analyst, Swastika Investmart Ltd.

"However, the company has suffered losses in the last two years due to COVID, and the rising number of cases remains concerning, which is why we are seeing a dip in its grey market premium. Grey market premiums indicate a modest listing gain of 10% at present," said Aayush Agrawal.

Earlier, on the last day of the issue, retail investors subscribed to the issue 8.08 times, while the NIIs portion saw bidding 42.04 times around the same time. The employees' quota also full subscribed by over 1.37 per cent at 5 pm on the second day of the opening of the issue, showed data with the BSE.   

The company had fixed a price band of Rs 405-425 per share having a face value of Rs 1.      

Rategain Travel Technologies Limited had aimed to raise Rs 375 crore via a fresh issue and had executed an Offer for Sale (OFS) of up to 22.6 million equity shares, according to the information available on the NSE website.      

Rategain Travel Technologies Limited is among the leading distribution technology companies globally and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India. The company offer 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.