RateGain Travel share price experienced a notable surge in Thursday’s trading session.
The share price soared by more than 7% in the early hours, fueled by a significant block deal worth ₹161 crore that took place right after the market opened.
This article delves into the details of the transaction, its impact on the stock price, and the company’s performance in 2024.
Block Deal Details
According to sources, Avaatar Holdings divested its 1.8% stake in RateGain Travel Technologies through a substantial block deal.
This transaction involved the exchange of 21.6 lakh shares, with the floor price set at ₹744.7 per share, representing a mere 1% discount from the previous closing price. IIFL Finance played a pivotal role as the broker for this deal.
Immediate Impact on Share Price
Following the block deal, RateGain Travel’s stock price surged, reaching ₹813 from the previous close of ₹752.1.
This marked a significant increase of up to 8% during early trading on Thursday. The market responded positively to the transaction, reflecting investor confidence in the company’s prospects.
Year-to-Date Performance
Despite the recent surge, RateGain Travel’s stock has had a relatively sluggish performance in 2024.
Year-to-date, the stock has appreciated by only 3%, trailing behind the Nifty index, which has gained 8% over the same period.
The stock peaked at ₹921 on February 16, 2024, but has since declined by more than 12%.
Financial Performance in the March Quarter
In the March quarter, RateGain Travel Technologies reported a remarkable improvement in its financial performance.
The company’s consolidated profit surged by 112% year-over-year, reaching ₹145 crore.
Revenue from operations increased by 40% to ₹256 crore, while EBITDA saw a substantial 72% increase compared to the previous year.
These figures highlight the company’s robust growth and operational efficiency.
Broader Market Context
In a related development, PNB Housing Finance also witnessed a significant block deal on the same day.
Approximately 1.36 crore shares of PNB Housing Finance were traded at a price exceeding ₹800 per share.
However, unlike RateGain Travel, PNB Housing Finance’s stock price declined by more than 4% following the block deal.
Conclusion
The sharp rise in RateGain Travel share price following a substantial block deal underscores the market’s positive sentiment toward the company.
Despite a year marked by modest overall growth, the recent financial performance and the large transaction have positioned the company favorably among investors.
As RateGain Travel continues to demonstrate strong financial results, its stock may experience further positive momentum in the market.