RateGain Travel surges 28% in two trading sessions, trades at new high

The stock was up 10% in intraday trades today, but still traded below its issue price of Rs 425 per share

Shares of recently listed company RateGain Travel Technologies (RTTL) rallied 10 per cent in intraday trade and hit a new high at Rs 400, thus extended its previous day’s 9 per cent surge on the National Stock Exchange (NSE). The stock has bounced back 28 per cent from its Monday’s low of Rs 313.25.

At 01:08 pm; RTTL traded 8 per cent higher at Rs 395, as compared to 0.83 per cent rise in the Nifty50 index. A combined 3.6 million equity shares had changed hands on the NSE and BSE. Currently, the stock was still trading below its issue price of Rs 425 per share.

The foreign portfolio investor (FPI), Goldman Sachs Funds has increased shareholding in RTTL via an open market transaction.

On December 17, the listing day, Goldman Sachs Funds - Goldman Sachs India Equity Portfolio bought 719,727 equity shares of RTTL at Rs 361.71 per share via bulk deal on the NSE, the exchange data shows.

Meanwhile, chunk of domestic investors had offloaded a collectively nearly 2.5 million equity shares RTTL in open market on listing day. Rajasthan Global Securities sold 935,105 equity shares of the company at Rs 362.18 per share. Edelweiss Mutual Fund also offloaded 682,110 equity shares at Rs 360.7 per share, while Integrated Core Strategies Asia Pte sold 878,838 equity shares at Rs 356.22 per share on the NSE, the bulk deals data showed.

RTTL had made a weak stock market debut, with its shares ended at Rs 337.55, a 21 per cent discount to its issue price of Rs 425 per share on the NSE on last Friday.

The Rs 1,336 crore initial public offer (IPO) of RTTL had received a good response from the investors. The issue was subscribed 17.4 times. The qualified institutional buyers (QIBs) portion of the issue was subscribed 8.42 times, while those of non institutional investors was subscribed 42.04 times and that of retail individual investors (RIIs) was subscribed 8.08 times, the data showed.

RTTL is among the leading distribution technology companies globally and is the largest Software as a Service (“SaaS”) company in the hospitality and travel industry in India, which is expected to benefit thrust on technology spending in the space. It operates through three business units of DaaS, Distribution and MarTech. The clients include some of the leading global airlines, hotel chains, cruises, car rental companies etc.

“The timing of RateGain IPO doesn't fit despite most of the IPOs are witnessing a handsome return because Covid is hurting its business in the near term while worry of omicron variant is another challenge.  Long term outlook of the company is promising therefore long-term investors can stay invested,” said Santosh Meena, Head of Research at Swastika Investmart, post listing of RTTL.