What should investors do with RateGain Travel Technologies shares post weak listing?

RateGain Travel Technologies Limited shares on Friday made a weak stock market debut on the exchanges in line with the estimates of the street. Most of the experts have predicted modest to negative listing for this public offer. Shares of RateGain Travel Technologies were listed at Rs 364.80, a discount of 14.16%, 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 RateGain debut. RateGain Travel Technologies market capitalisation stood at Rs 3,894.54 crore during the listing.

The issue was oversubscribed 17 times on the last day on December 9, 2021.  

As the IPO got listed at a discount price, most of the experts have suggested to sell the shares on listing or hold it for long-term.  

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Earlier this morning, 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.

Speaking on RateGain shares listing, 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 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.    

The NSE Bell has been rung in celebration of RateGain Travel Technologies Limited listing on the Exchange!#NSE #Listing #RateGain #NSEIndia @RateGain pic.twitter.com/X760cEZSHG

— NSEIndia (@NSEIndia) December 17, 2021

He further said that the long-term outlook of the company remains promising. "Therefore, long-term investors can stay invested, while those who applied for listing gain can keep stop loss of Rs 330. New investors can look for entry opportunities at 25-30% correction."

Manoj Dalmia, Founder and Director-Proficient Equities Limited, said GMP at Rs 45 suggests that the listing price would be around Rs 450-470, a 10 to 15% listing gains. "It is recommended that one books profit is the shares list around the said price," he said.  

The impact of the pandemic has affected the travel and hospitality the most among others, said Ravi Singh, Vice President and Head of Research at ShareIndia.  
Post covid, the pickup in travel services showcases optimism. But as the fear of Omicron has been gripping the world, the path of recovery for this industry is still gloomy. RateGain offers travel and hospitality software solutions and its price band seems on the upper side as per the valuations. It may list in the range of Rs. 380 - 420. It's recommended to book the subscription at the time of listing," he had suggested.  

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 offers 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.