17 Dec , 2021 By : monika singh
New Delhi: Amidst volatility in the secondary market and the ongoing IPO flurry, RateGain Travel Technologies is all set for its Dalal Street debut today. The software as a services (SaaS) player is likely to disappoint the investors as the company is commanding a tepid premium in the grey market.
RateGain Travel is commanding a muted premium of Rs 15 apiece in the unofficial space, a premium of less than 5 per cent compared to the issue price of Rs 425.
Analysts tracking the grey market are attributing multiple reasons for the low premium, including jittered sentiments, exposure to the travel industry in the Covid times and rich valuations.
The loss-making issue hit the Street at pricey valuations amidst the weaker sentiments in the secondary markets, said Abhay Doshi, co-founder, UnlistedArena.
"The SaaS player is also impacted by rising Omicron cases as it is active in the travel sector," Doshi added.
"Also, there are several IPOs on the bourses, which are hurting it further." RateGain Travel Technologies IPO was open for subscription between December 7-9. The company sold its shares in the range of Rs 405-425 per share to raise Rs 1,335.74 crore via the primary route.
The issue was subscribed 17.41 times. The portion for institutional and retail bidders was subscribed over 8 times each, whereas HNI investors quota fetched bids over 42 times.
The company is the largest aggregator of data points in the travel and hospitality space and the first SaaS company to hit the market with a strong base of customers and a diversified product portfolio.
Ankur Saraswat, research analyst at Trustline Securitiesexpects the listing to be around Rs 475, signalling a double-digit listing pop for the investors.
"It is an artificial intelligence and innovation-driven company," he added. "Growth in travel and tourism after this pandemic will be a big booster going ahead."
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