RateGain shares list at 15% discount to IPO price

The public issue of the company had seen a lot of interest from investors with 17.41 times subscription during December 7-9

Travel and hospitality solutions provider Rategain Travel Technologies made a weak debut on the bourses on December 17 as it listed with a 15 percent discount.

The stock opened at Rs 364.80 on the BSE (Bombay Stock Exchange), against an issue price of Rs 425 per share, while the opening price on the National Stock Exchange (NSE) was Rs 360.

The public issue of the company had seen a lot of interest from investors with 17.41 times subscription during December 7-9. Non-institutional investors had bought shares 42.04 times the portion set aside for them and the qualified institutional buyers portion was subscribed 8.42 times. Retail investors had put in bids for 8.08 times the allotted quota and the employee portion was subscribed 1.37 times.

The largest Software as a Service (SaaS) company in the hospitality and travel industry in India has mobilised Rs 1,335.74 crore through its public issue. The offer was composed of a fresh issue of Rs 375 crore, and an offer-for-sale of Rs 960.74 crore by investor and promoters.

Ahead of the issue, RateGain had raised Rs 598.83 crore in anchor investment from 34 anchor investors at the upper price band of Rs 425 a share. Some of the key anchor investors included the government of Singapore, the Monetary Authority of Singapore, Nomura, ICICI Prudential Mutual Fund, SBI Life Insurance, Nippon Mutual Fund, Pinebridge, Axis Mutual Fund, Birla Mutual Fund and ICICI Prudential Life Insurance.

Santosh Meena, Head of Research at Swastika Investmart Ltd said: The timing of RateGain IPO doesn't fit despite most of the IPOs witnessing a handsome return because Covid is hurting its business in the near term, while worry over the Omicron variant is another challenge. The long-term outlook of the company is promising.