How was the Rategain Travel Technologies IPO listing on Friday and why the discount so steep?
Answer
Answer
It was a weak listing for Rategain Travel Technologies on Friday at a steep discount of 15.29% below the issue price and things only got worse along the way as the markets also had a bear squeeze. With 17.41 times subscription and a mild premium in the grey market, Rategain Travel Technologies was to trade at premium. But the listing was weak and only got worse as the day progressed.
The closing was much lower than the listing price. For example, on the NSE, Rategain Travel Technologies closed at Rs.337.55, a first day discount of 20.58% at close. Even on the BSE, the stock closed at Rs.340.50, a first day discount of 19.88% on issue price. On the NSE, the stock of Rategain touched an intraday high of Rs.383 and an intraday low of Rs.333.85. Unfortunately, the discount on issue price kept widening through the day.
On listing day, Rategain traded 182.47 lakh shares on NSE valued at Rs.659 crore and it was the nineteenth most active share on NSE by traded value. On the BSE, the stock traded 7.58 lakh shares valued at Rs.27.43 crore. The market cap of Rategain Travel Technologies at the close of the first day of trading stood at Rs.3,635 crore with a much smaller free-float market cap of Rs.582 crore.