Bumper debut by Tata Tech, opens with striking 140% premium on IPO price

Tata Technologies, a subsidiary of Tata Motors (TML), marked a significant milestone on Thursday, November 30, as it debuted on the market at a remarkable 140% premium to its issue price of Rs 500. The stock opened at Rs 1,200 on the NSE and ₹1,199.95 on the BSE, and made an intraday high of Rs 1400, almost 180% up.

The shares of Tata Technologies listed with a market capitalization of Rs 56,000 crores, more than Tata Elxi, which is valued at Rs 52,000 crores.

Industry analysts attribute Tata Tech’s exceptional debut to its robust subscription numbers, solid financial performance, strong parentage within the Tata Group, and optimistic growth prospects in the engineering services sector.

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Investors eyeing substantial listing gains found validation in the company’s shares, which commanded a premium of ₹415 in the grey market prior to listing. In light of Tata Technologies’ promising future, analysts are advising investors to consider booking 50% profits while retaining the remaining shares for the long term.

“Tata Technologies, a global leader in engineering services, made its much-anticipated stock market debut today, listing at an impressive blockbuster premium of 173% over its IPO price of ₹500 per share.The overwhelming response to the IPO was evident in its staggering oversubscription of 69.43 times. This robust investor interest reflects the company’s strong fundamentals and promising growth prospects and of course the legacy of the Tata group,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

Nyati also said, the listing of Tata Technologies is a positive development for the company and the engineering services sector. Investors who participated in the IPO should consider holding on to their shares for the long term, as the company is well-positioned for sustained growth.

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Prashanth Tapse, Research Analyst, Sr VP Research at Mehta Equities said that ,given the growth potential in outsourcing, the business model would be in great demand going forward and considering all factors, we recommend allotted investors to book 50% profits over and above Rs 1400 and retain rest of the holding for long term considering healthy long term returns post listing and for those investors who failed to get allotments in the public offer can accumulate Tata Technologies on every dips post listing for long term.

This momentous market entry by Tata Technologies marks the first IPO listing in nearly two decades from the esteemed Tata Group. The last IPO from the Tata Group was Tata Consultancy Services in 2004.

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