Record listing gain for Tata Tech, 3rd-best ever

Debuted at Rs 1,200, within minutes jumped 180% to high of  Rs 1,400
Logo used for representational purpose only.
Logo used for representational purpose only.

NEW DELHI: The shares of Tata Technologies made one of the most impressive debuts on the stock exchanges ever, listing at 140% premium to the IPO price. The stock debuted on Thursday at Rs 1,200 on the NSE and BSE, as against its issue price of Rs 500. Within minutes, the shares jumped 180% to a high of Rs 1,400. After some profit booking, it closed at Rs 1,313 apiece, up 162.60% on the NSE.

With this bumper listing,  which is way above than street expectations, Tata Technologies has given the third-best listing day closing gains in the history of the Indian capital market. Only Sigachi Industries and Paras Defence and Space Technologies (both listed in 2021) have given a better day 1 return than the Tata Technologies stock.

However, for the calendar year 2023 so far, Tata Tech, the first IPO from the Tata Group in two decades, has given the highest day 1 gain. Tata Tech’s initial public offering (IPO) was fully subscribed in less than one hour after subscription opened last week. In three sessions, the issue was subscribed 69.43 times.

According to market experts, the Tata Motors- promoted company, which provides engineering and design services to automotive clients, is expected to benefit from the auto sector’s transition to electric and autonomous mobility.

“It was a bumper listing above our expectation respecting the legacy of TATA brand along with investors friendly pricing indicating Tata Group legacy to reward shareholders,” Prashanth Tapse, research analyst, senior VP research at Mehta Equities said. He added that given the growth potential in outsourcing, the business model would be in great demand going forward, he believes.

Meanwhile, Gandhar Oil’s shares were listed at Rs 298 on the NSE as against the issue price of Rs 169, giving a listing gain of 75%. The white oil manufacturer’s stock closed at Rs 301.5 apiece. Shivani Nyati, Head of Wealth, Swastika Investmart said that the company’s strong fundamentals, robust demand for the IPO, and strong listing price suggest that it is well-positioned for growth in the future.

“However investors may consider to book profit in it once,” she added. Meanwhile, Fedbank Financial Services had a weak first day on the bourses, listing at Rs 137.75 on BSE, a 1.6% discount to the IPO price of Rs 140. The stock ended the day at Rs 140.

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