Rategain Travel lists at discount

Rategain Travel Technologies had a discounted listing today; it got listed on the BSE at Rs.364.80 v/s IPO price of Rs.425/share.

The stock was expected to see a listing at a premium of 10-15% as the IPO had received a healthy response. The IPO was subscribed over 17-times, with HNIs portion subscribing 42.04 times, while QIBs and retail investors was at 8-times.

The company is India’s largest software-as-a-service (SaaS) company in the hospitality and travel industry, serving hotels and online travel agents.

In our IPO Analysis, we had concluded, “While SaaS is the future of software, given threat of new variant, RateGain’s IPO couldn’t be more ill-timed. With headwinds over the short-to-medium term, and valuation pricing in all the long-term positives, we do not recommend applying in the IPO.”