Tata Technologies Ltd soared 180 per cent over its issue price, within a few minutes of its market debut on Thursday. With this, the Tata group firm, the first to list after TCS in 2004, topped Rs 55,000 crore in market capitalisation (m-cap).
The stock rose 180 per cent to hit a high of Rs 1,500 over its issue price of Rs 500. At 10.08 am, the Tata firm was commanding a m-cap of Rs 55,329.13 crore. At least nine other Tata group companies including Tata Consultancy Services Ltd, Titan Company Ltd, Tata Motors Ltd, Tata Steel Ltd, Trent Ltd and Tata Power Company Ltd command m-caps in excess of Rs 50,000 crore.
With its listing, Tata Technologies has become the ninth most-valued listed company within the Tata group pack.
Rajnath Yadav, Research Analyst at Choice Broking calls Tata Technologies as a long-term play. At the prevailing market price, the stock is trading at a P/E multiple of 75.6 times, which seems to be in-line to the peers, Yadav said. He advised short-term investors to book profit, sating "long-term investors can remain invested. Long only investor's can consider for investment at this levels."
Shivani Nyati, Head of Wealth, Swastika Investmart said 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, Nyati 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," she said.
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Prashanth Tapse, Senior VP (Research), Mehta Equities said given the growth potential in outsourcing, the business model would be in great demand going forward. He advised Tata Technologies investors to book 50 per cent profits over and above Rs 1,400 and retain rest of the holding for long-term, considering healthy returns.
"For those investors who failed to get allotments in the public offer can accumulate Tata Technologies on every dips post listing,” he said.
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