Tata Technologies impact? Tata Motors shares hit 52-week high ahead of arm's listing

Shares of Tata Motors Ltd hit fresh 52-week high in Wednesday's trade ahead of the listing of its arm Tata Technologies Ltd on stock bourses. Tata Technologies, which would be the first listing from the Tata group post the TCS IPO in 2004, was last commanding a grey market premium (GMP) of Rs 399, suggesting a likely listing at Rs 899 over the issue price of Rs 500, as the Rs 3,042.51 crore IPO had attracted 69.43 times bids

The Tata Motors stock hit its 52-week high of Rs 702.90 on BSE. It was later trading 0.49 per cent higher at Rs 701 level.

Prashanth Tapse, Senior VP Research at Mehta Equities said Tata Technologies could see a strong listing gain of over 75 per cent, considering the overwhelming subscription demand and investor-friendly pricing.

"There is a high possibility that Tata Technologies can be a doubler-candidate post listing. We believe the super listing premium is justified mainly on the back of Tata parentage tag that enjoys first preference among investors community and its unique well established global business model which has been generating healthy margins in the sector it serves. Given the growth potential in outsourcing, the business model would be in great demand going forward," Tapse said.

"Hence considering all these factors, we recommend allotted investors to book 50 per cent profits over and above our expectations and retain the rest of the holding for long term considering healthy long term returns post listing. Investors who failed to get allotments in the public offer can accumulate Tata Technologies on every dips post listing for a long term,” he said.

Shares of Tata Motors, meanwhile, were also in focus ahead of November sales data. Nomura India estimates Tata Motors PV sales for the month at 44,000, down 4 per cent YoY.

"Tata Nexon’s facelift in particular has received strong response, as per our dealer survey. It became the no.1 SUV across all segments in Sep-23 and Oct-23 as expected by us and may retain the position in November also," the brokerage said.

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