Home / Markets / Ipo /  RateGain IPO: What GMP (grey market premium) signals ahead of share listing

RateGain IPO allotment has been finalised and all eyes are now set on RateGain IPO listing date, which is most likely on 17th December 2021. In 3-day bidding, the public issue worth 1,335.74 crore got subscribed 17.41 times whereas its retail portion got subscribed 8.08 times. Ahead of share listing, RateGain share price has surged in the grey market. According to market observers, shares of RateGain Travel Technologies are available at a premium of 45 in the grey market today.

RateGain IPO GMP

As mentioned above, RateGain IPO GMP today is 45, which is 10 higher from its yesterday's GMP of 35. Market observers said that RateGain IPO grey market premium (GMP) has surged post-share allocation from 15 to this levels. They said that such rise in RateGain IPO reflects that the public issue may deliver marginal listing gain to the allottees. They went on to add that RateGain IPO GMP has gone up post-share allocation despite negative stock market sentiments.

What this GMP mean?

Market observers went on to add that GMP is an unofficial estimated figure in regard to listing gain from the IPO. As RateGain IPO GMP today is 45, it simply means that grey market is expecting that RateGain shares will list around 470 ( 425 + 45), which is around 10 per cent higher from its price band of 405 to 425 per equity share.

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

On fundamentals that may favour RateGain IPO listing at higher premium, 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."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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