RateGain Travel Shares End 21% Down On Market Debut
Shares of RateGain Travel Technologies Ltd. declined on market debut even as its Rs 1,335.70-crore initial public offering saw healthy investor demand.
The stock listed at Rs 360 apiece, a 15.29% discount to the issue price of Rs 425 apiece, on the National Stock Exchange. It ended the first trading day at Rs 337.55 apiece, down 20.57%, against a 1.53% decline in the benchmark Nifty 50.
RateGain's issue, which comprised a fresh issue of shares worth Rs 375 crore and an offer for sale of Rs 960.7 crore, was subscribed 17.41 times.
Non-institutional investors led the bidding for shares in the IPO, with the portion reserved for them subscribing 42.04 times. The retail and institutional categories also saw more demand than shares on offer.
RateGain is among the leading distribution technology companies globally and is the largest software-as-a-service company in the hospitality and travel industry in India.
It offers travel and hospitality solutions to hotels, airlines, online travel agents, meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries, among others.
The company has been making losses in the last two fiscals as well as in the five months ended August of FY22.