The RateGain Travel Technologies Ltd share price is gradually recovering as it surged 12 percent at Tuesday's high after a weak debut on Dalal Street last week and extended losses on Monday.
The shares of RateGain Travel were listed at a discount of over 15 percent against the issue price of Rs 425 on Friday. They settled with a decline of over 20 percent. The stock listed at Rs 364.80 from the issue price on the Bombay Stock Exchange (BSE) and during the day, it even tumbled 21.38 percent to Rs 334.10.
On Monday, the stock of the software as a service (SaaS) company continued the losses and further fell more than 8 percent from its previous close to Rs 312.4 on BSE. At that level, it was available at a discount of 26.5 percent to its issue price.
RateGain shares ended 9.73 percent higher on Tuesday at Rs 367 apiece on the BSE. The stock rallied 9.23 percent on the NSE to close at Rs 366.10 per share.
The upward movement in the stock comes on a day when the market rebounded after two sessions of steep losses amid sell-off in global equities due to Omicron concerns, Fed tightening, and continued FII selling.
RateGain Travel's initial share sale was subscribed 17.41 times earlier this month. The Rs 1,335.73-crore IPO comprised a fresh issue of up to Rs 375 crore and an offer-for-sale of up to 2.26 crore equity shares. The price band was fixed at Rs 405-425 per share.
RateGain Travel is the first SaaS or software as a service company to be listed on Indian bourses. Earlier in November, the company’s CMD Bhanu Chopra had said travel will be the next sectoral theme and that growth of about 25 percent is expected in the next four to five years.
(Edited by : Jomy Jos Pullokaran)