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RateGain IPO: What GMP (grey market premium) signals after share allotment

RateGain Travel Technologies IPO GMP today is ₹35 that means grey market is expecting that shares of RateGain Travel Technologies will list around ₹460 ( ₹425 + ₹35), believe market observers. Photo: Courtesy RateGain Travel Technologies website

2 min read . Updated: 15 Dec 2021, 02:53 PM IST Edited By Asit Manohar

RateGain IPO GMP today is ₹35, which is ₹5 higher from its yesterday's grey market premium of ₹30, say market observers

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RateGain IPO allotment has been finalised and now all eyes are set on the share listing date, which is most likely on 17thg December 2021. The public issue worth ₹1,335.74 crore got subscribed 17.41 times whereas its retail portion got subscribed 8.08 times. After announcement of share allocation, grey market is also giving signals in regard to the book built issue. According to market observers, shares of RateGain Travel Technologies are available at a premium of ₹35 in grey market today.

RateGain IPO GMP

Market observers said that RateGain IPO GMP today is ₹35, which is ₹5 higher from its yesterday's grey market premium (GMP) of ₹30. They said that RateGain IPO grey market price has been oscillating around ₹30 to ₹35 that can be taken as indication that RateGain Travel Technologies shares price has got steady in this range for around one week. They said that such trends in grey market signals about marginal listing gain from the IPO.

What this GMP mean?

As per the market observers, RateGain Travel Technologies IPO GMP today is ₹35 that means grey market is expecting that shares of RateGain Travel Technologies will list around ₹460 ( ₹425 + ₹35), which is 8 per cent higher from its price band of ₹405 to ₹425 per equity share.

However stock market experts maintained that GMP is an unofficial data and it has nothing to do with the financials of the company. They said that it is balance sheet of the company that gives ideal picture of a company's financial health not GMP.

Highlighting the fundamentals favouring RateGain IPO, Anand Rathi research report says, "RateGain Travel Technologies serves a large and rapidly growing total addressable market. Third party travel and hospitality technology is estimated to be a $ 5.91 billion market in 2021 growing to an estimated $ 11.47 billion in 2025 at a CAGR of 18 per cent. Enterprise applications focused on guest acquisition, distribution, revenue maximization and wallet share expansion in the hospitality and travel industry have a serviceable addressable market size of $4.34 billion in 2021, growing to an estimated US$ 8.45 billion in 2025. This is a large and rapidly growing addressable market opportunity for a vertical specific platform company like ours. The travel technology segment is further favoured by industry tailwinds of digitization in the post COVID times."

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