At a 140% premium over the issue price of Rs 500, Tata Technologies’ listing price of Rs 1,200 beat Street’s estimates. While the stock was expected to double on the listing, it went far beyond, hitting the day’s high of Rs 1,400 on the NSE or a 180% uptick over the upper IPO price band.
Reacting on the development, Shivani Nyati, Head of Wealth, Swastika Investmart said that the much-anticipated stock market debut was impressive with a blockbuster premium of 173% over its IPO price. An overwhelming response to the IPO which saw an oversubscription of 69.43 times was a precursor to what lay ahead, she said.
“This robust investor interest reflects the company’s strong fundamentals and promising growth prospects and of course the legacy of the Tata group. The listing of Tata Technologies is a positive development for the company and the engineering services sector,” Nyati added as she advised investors to hold the stock for a long term. In her view, the company is well-positioned for sustained growth.
Another analyst Prashanth Tapse of Mehta Equities recommends booking partial profits at levels above Rs 1,400 while holding on to the remaining shares for a long-term horizon. “We recommend allotted investors to book 50% profits over and above Rs 1,400 and retain the rest of the holding for long term considering healthy long term returns post listing”.
And those investors who failed to get allotments in the public offer can consider accumulating it on every dip, Tapse said.
The bumper listing ensured that the market cap also jumped more than two-fold to Rs 54,446.80 crore against the expectation of a post-issue market cap of Rs 19,269 crore – Rs 20,283 crore. The Tata Tech IPO recorded the best listing in the last 2 years.In recent years, the best IPO in terms of listing gain was that of Sigachi Industries which debuted on November 15, 2021 at 253% premium. The stock debuted at Rs 575 per share against an issue price of Rs 163.
The second best IPO was that of Paras Defence which went up 171% on October 1, 2021. In the peak of the IPO bull market in 2021, Latent View Analytics had also similarly rallied 169% in end-November.
Prior to that, city gas distribution company Indraprastha Gas Limited (IGL) stock listed at a 150% premium.
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