RateGain Tech falls 20% on listing day

The stock listed at Rs 360 on the NSE, a 15% discount against its issue price of Rs 425.

Shares of HDFC Bank, PNB, ICICI Bank, and Kotak Mahindra Bank advanced up to 1.4%. RBL Bank ended being the top loser in the index.
Shares of HDFC Bank, PNB, ICICI Bank, and Kotak Mahindra Bank advanced up to 1.4%. RBL Bank ended being the top loser in the index.

Shares of RateGain Travel Technologies made a weak debut on the exchanges on Friday as they listed at a 15% discount over the issue price, despite healthy demand from investors during the share sale. The stock listed at Rs 360 on the NSE, a 15% discount against its issue price of Rs 425. On the BSE, the stock debuted at Rs 364.80, down 14.16% over its issue price. The stock ended the session 19.88% lower at Rs 340.5 on the BSE.

RateGain’s shares were trading with minimal premium in the grey market ahead of the listing too. The company has registered losses on the books during the pandemic. 

The Rs 1,335-crore initial public offering (IPO) was overall subscribed 17.41 times during its share sale between December 7 to December 9. Brokerage firms highlighted that the company is highly dependent on the Tourism and Hospitality industry for its revenues and the industry is expected to grow at a positive CAGR in the upcoming years. However, the area will continue to face some headwinds in the near term due to the impact of Covid-19, analysts said.

“The company serves a large and rapidly growing total addressable market. Third party travel and hospitality technology is estimated to be a $591 crore market in 2021, growing to an estimated $1,147 crore in 2025 at a CAGR of 18%,” Kotak Securities said in an IPO note.

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