RateGain IPO Sees Tepid Debut; Lists At 15% Discount To The IPO Price

Shares of RateGain Travel made a weak debut on Friday, with its shares listing at a price of Rs. 360 per share on the NSE, while on the BSE it listed at Rs. 364.8 apiece. This translates into a listing discount of 15 percent as against the issue price of Rs. 425.

RateGain IPO Sees Tepid Debut; Lists At 15% Discount To The IPO Price

We all apply for an IPO or share sale by a company considering its fundamentals for the long term or may be even for short term or listing gains. To some extent, other than the current market momentum, IPOs probable listing price is in sync with the grey market premium that it commands.

As per the various sources including brokerages, the unlisted shares of RateGain as against the IPO price of Rs. 425 per share, demanded a premium of Rs. 18.

In the 3 day bidding process for the IPO that lasted till December 9, 2021, the issue garnered huge investor interest and was subscribed 17.41 times. Established in 2004, the company operates a software-as-a-service (SaaS) platform primarily offering travel and hospitality software solutions.

The low premium commanded by RateGain as interpreted by various analysts tracking the unlisted market is owing to the company's focus on the travel industry amid the Covid times, rich valuations and jittery sentiments.

Co-founder of UnlistedArena had been of the view that the IPO offering RateGain hit the street at premium valuations amid weaker sentiments in the capital markets. "The SaaS player is also impacted by rising Omicron cases as it is active in the travel sector," he adds.

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