RateGain Travel Technologies shares will debut in the secondary market on Friday. Ahead of the listing of shares, RateGain Travel commanded a premium in the grey market - an unofficial market for unlisted securities. Dealers said the RateGain grey market premium (GMP) stood at Rs 45 on Friday ahead of the listing on Dalal Street.

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The RateGain GMP had risen to as high as Rs 100 during the IPO, according to IPO Watch.

RateGain Travel GMP

Source: IPO Watch

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"RateGain Travel Technologies' listing may be neutral or with a marginal gain as the IPO was fully priced," said Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities.

"Too many IPOs, the richly priced issue and the fear of Omicron may affect the listing of RateGain Travel Tech," he added.

Umesh Paliwal, Co-Founder of UnlistedZone, which deals in unlisted securities, expects the listing to be either at a discount or at par with the issue price.

"The company is working in the travel sector, which has been in a downtrend for the last one-and-a-half year, and the prospects look bleak given the Omicron threat... The company's financial performance is also very weak," Paliwal said.

RateGain Travel Technologies is a software as a service (SaaS) company in the hospitality and travel industry.

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RateGain Travel's initial public offering (IPO) was a combination of fresh issuance and an offer for sale (OFS). The RateGain Travel Technologies IPO, which was open for bidding between December 7 and 9, saw an overall subscription of 17.4 times the shares on offer.

The portions reserved for non-institutional investors and qualified institutional buyers (QIBs) were subscribed 8.4 times and 42 times respectively. The quota reserved for retail investors was booked 8.1 times.

Of the total issue, 75 percent was reserved for QIBs, 10 percent for retail investors and 15 percent for non-institutional investors.

RateGain Travel Tech shares were available for bidding in a price range of Rs 405-425 under the IPO, in multiples of 35. At the upper end of the band, one lot is worth Rs 14,875.

RateGain Travel raised Rs 598.8 crore from anchor investors at Rs 425 apiece ahead of the IPO.

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First Published:Dec 17, 2021 8:30 AM IST