RateGain IPO: Subscription for the public issue of RateGain Travel Technologies opened on 7th December 2021 and it is available for bidding till 9th December 2021. So, today is the last day to apply for the public offer worth Rs1,335.74 crore. In first two days of bidding, the public issue has been subscribed 75 per cent of its offerings. As per the RateGain IPO subscription status by day two, the public issue got subscribed 398 per cent in the retail category and 8 per cent in the NII category. According to market observers, grey market is cautiously watching the investors' response to RateGain IPO. They said that after tepid response on first two days of bidding, shares of RateGain Travel Technologies are trading at a premium of Rs40 in the grey market today.

RateGain IPO GMP

Market observers said that RateGain IPO GMP today is Rs40, which is Rs10 higher from its yesterday's grey market premium (GMP) of Rs30. They said that the rise in RateGain IPO GMP can be attributed to the positive sentiments in Indian stock market. However, they maintained that investors' response to the public issue after two days of bidding is quite tepid and the issue is still not 100 per cent subscribed after two days of bidding. However, they expected that the issue will get fully subscribed on day three and there would be some spike in investors' sentiment in regard to the public issue after the trend reversal in the primary market sentiment.

What this GMP mean?

According to market observers, RateGain IPO GMP today is Rs40, which mean grey market is expecting that RateGain shares would list around Rs465 ( Rs425 Rs40), which is around 9.50 per cent higher from its price band of Rs405 to Rs425 per equity share.

However, stock market experts are unmoved by this grey market development. They said that it's fundamentals of the company that matter not grey market premium as GMP has nothing to do with the financials of the company. They said that GMP is completely unofficial data and it should not be taken as an important indicator about success or failure of the public issue.

RateGain IPO subscribe or not?

Taking cue from the high growth potential, unique business propositions with minimal competition and valuation comfort of the company, Reliance Securities has given 'Subscribe' tag to RateGain IPO with a long-term perspective.

Likewise, Prabhudas Lilladher has also recommended ‘subscribe’ for long term gains as it believes the company is well positioned to capture wallet share given its comprehensive, inter-operable, innovative industry specific solutions and marquee client base.