Shares of Tata Technologies saw a solid buying interest even after a blockbuster Dalal Street debut. The stock turned multibagger on the listing itself and attracted investors across all the categories, extending its gains even higher, before trading range-bound for the day. Shares of Tata Technologies Ltd were listed at a premium of 140 per cent on both NSE and BSE at price of Rs 1,200 and Rs 1,199.95 on Thursday, against the issue price of Rs 500. The stock surged another 17 per cent to Rs 1,400 on both the exchanges and took overall gains to 180 per cent over the given issue price. Following the listing, shares of Tata Technologies gyrated in the tight range of Rs 1,300-1,400 apiece during the first half of its maiden trading session. However, market experts and analysts tracking the stock, continue to remain positive on the counter for a long run. A few suggest booking partial profit for now and accumulating stock at lower levels. Market participants are positive on Tata Technologies citing the strong parentage of the Tata Group and robust growth prospects in the niche business sectors. Tata Technologies was the first IPO by the renowned Tata Group in about two decades, after Tata Consultancy Services (TCS) in 2004. Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers believes that this strong listing was supported by Tata's parentage entity and its unique business model. The company remains to be a preferred choice as an Indian engineering service provider (ESPs).
Also read: Tata Technologies makes bumper D-st debut; lists at 140% premium at Rs 1,200
"The increasing demand for autonomous and connected technologies globally led by safety measures will keep business prospects of the company at a sweet spot for the long term. We suggest the investors to 'hold' the issue as a long-term view on IPO according to their risk appetite," Solanki said. "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 per cent profits over and above Rs 1400 and retain rest of the holding for long-term considering healthy long term returns post listing, said Prashanth Tapse, Senior VP (Research), Mehta Equities. For those investors who failed to get allotments in the public offer can accumulate Tata Technologies on every dip post listing for long term.” Tapse said. Tata Technologies sold its primary offering in the fixed price range of Rs 475-500 apiece with a lot size of 30 equity shares. The issue was open for bidding between November 22 and November 24 to raise a total of Rs 3,042.51 crore. The issue was entirely an offer for sale by the promoter and other selling shareholders of the company.
Also read: Tata Technologies shares to list today. All eyes on Tata Motors stock. Here's why
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 at Swastika Investmart. "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," she said. The issue saw a huge demand across all the categories of investors and attached 73,58,222 bids worth more than Rs 1 lakh crore and commanding an overall subscription of 69.43 times. The portion for qualified institutional bidders was subscribed a stellar 203.41 times, while the portion reserved for retail investors and non-institutional investors was booked 16.50 times and 62.11 times, respectively. It had separate reservations for eligible employees of the company and shareholders of Tata Motors Ltd and Tata Motors DVR Ltd. The allocation reserved for shareholders of Tata Motors and eligible employees was booked, 29.20 times and 3.70 times, respectively during the bidding process. The demand for the company’s solutions would be further aided by a shift to EVs from traditional engines by global and Indian automakers. Hence, we recommend investors who have been allotted shares to hold them for a long-term perspective, said Dhruv Mudaraddi, Research Analyst, StoxBox.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Hot stocks on November 30: Reliance Industries, Timken India, IREDA, Adani Total Gas and more
Also read: Stock recommendations for November 30, 2023: Gujarat Gas, Chambal Fertilisers and Quess Corp
Also read: PCBL shares jump 6% to hit one-year high today; is more steam left?