RateGain Travel Technologies shares make weak stock market debut; list at 14% discount

RateGain Travel Technologies Limited shares made a weak stock market debut on the exchanges on Friday. Shares of RateGain Travel Technologies were listed at Rs 364.80 per share against its issue price of Rs 425 per share on the BSE on Friday. The investors incurred a loss of Rs 60.20 per share or 14.16% against the issue price.  

The issue that opened on December 7, 2021 was subscribed 17.41 times on the last day on December 9, 2021. The IPO received bids for 30,20,04,780 shares as against reserved quota of 1,73,51,146 shares, as per NSE.  

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.    

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However, the experts had predicted modest to discount listing for this travel distribution technology company.  

Ahead of the listing, Zee Business Managing Editor Anil Singhvi said the shares of Rategain Travel Technologies Limited is likely to be listed on the bourses below its issue price. " The shares are expected to list below the issue price of Rs 425 per share. Keep a stop loss of Rs 400, " said the Market Guru.  

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.

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.