The stock is listed at Rs 360 on NSE, discounting 15% against the issue price of Rs 425.

Shares of RateGain Travel Technologies made a poor debut on the exchanges on Friday as they were listed at a 15% discount to the issue price, despite strong investor demand while selling shares. The stock is listed at Rs 360 on the NSE Stock Exchange, discounting 15% against the issue price of Rs 425. In BSE, the stock appeared at Rs 364.80, down 14.16% from the issue price. The stock ended the session down 19.88% at Rs 340.5 on the Bahrain Stock Exchange.

RateGain shares were trading at a minimal premium on the gray market prior to the listing as well. The company posted losses on its books during the pandemic.

The initial public offering (IPO) of Rs 1,335 crore was publicly subscribed 17.41 times during its stake sale from Dec 7 to Dec 9. Brokerage firms have confirmed that the company is highly dependent on the tourism and hospitality industry for its revenue and the industry is expected to grow at a positive compound annual growth rate in the coming years. However, analysts said the region will continue to experience some headwinds in the near term due to the impact of Covid-19.

The company serves a large and rapidly growing market that can be addressed in aggregate. In its IPO note, Kotak Securities said the third-party travel and hospitality technology was estimated at Rs 591 crore in the market in 2021, and grew to an estimated Rs 1,147 crore in 2025 at a compound annual growth rate of 18%.

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