Tata Tech and Gandhar Oil shine on debut, while Fedbank falters

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Tata Tech and Gandhar Oil shine on debut, while Fedbank falters
Source: Canva
  • Tata Technologies stock zoomed by 162% in early trade on debut.
  • Gandhar Oil too exceeded grey market expectations with 78% listing gains.
  • Fedbank Financial Services held on to its issue price, with 0% listing gains.
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Two of three public issues that debuted on D-Street gave stellar listing gains to investors on Thursday. While Tata Technologies stock zoomed by 162% on debut day, Gandhar Oil too exceeded grey market expectations with 78% listing gains at the time of closing.

The stock of Fedbank Financial Services barely moved as it started trading on Thursday with 0% listing gains.

CompanyListing gainsGrey market premiumMarketcapSubscription details
Tata Technologies 162%75%₹52,734 crore69x
Gandhar Oil 78%44%₹2,573 crore64x
Fedbank Financial Services0%NA₹5,161 crore2.2x
IREDA87%38%₹16,123 crore38.8%

Hold, buy-on-dips and book profits say analysts

Most experts and the grey market predict all companies to provide double-digit listing gains, with the exception of Fedbank Financial Services. Tata Technologies IPO which broke a record with the number of applications is expected to provide super premium listing gains on the back of its lineage and a well-established business model of the engineering R&D player.

“There is a high possibility that Tata Technologies can be a doubler candidate post listing. Given the growth potential in outsourcing, the business model would be in great demand going forward. We recommend allotted investors to book 50% profits over and above our expectations and retain the rest for the long-term,” said Prashanth Tapse, research analyst, senior VP of research at Mehta Equities.

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While oil manufacturer Gandhar Oil also saw healthy subscriptions, and its niche play has also appealed to the brokerages and investors alike. “We recommend allotted investors to book listing day profits over and above our expectations of 30-40% listing gains. Considering limited upside post listing, investors who failed to get allotments in the public offer can accumulate on dips post listing,” says Rajan Shinde, research analyst at Mehta Equities.

Flair Writing which is known for its stationery products is also branching out into houseware, steel bottles and appliances. While short-term investors who see over 25% listing gains can choose to book profits, there is a case for long-term investors to hold on or accumulate on dips, advises Shinde.
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