Va va vroom: Tata Technologies stock doubles investor money on debut

• Tata Tech stock listed at ₹1,314 as compared to its issue price of ₹500 per share.
• Its marketcap stands at ₹53,314 crore, according to Bombay Stock Exchange.
• Analysts see long-term gains in the stock and advise allotted investors to hold on to a portion of the shares.

Tata Technologies stock zoomed on debut day, providing its investors with 162% listing gains. That’s more than what the grey market had anticipated at 75%.

The stock listed at ₹1,314 as compared to its issue price of ₹500 per share. Its marketcap stands at ₹53,314 crore, according to Bombay Stock Exchange.

After a break of 19 years, a Tata group company is listed on the stock exchanges, and has created enough buzz even before listing. The ₹3,042 crore issue is a complete offer for sale that was subscribed 69 times over, making investors rush for it on debut day.

Tata Technologies also joined the coveted list of dream debuts like Ideaforge and Netweb Technologies. Here are some of the best listing gains provided by stock debuts this year.

Companies with the best listing gains in 2023
Source: Axis Capital

Possible wealth doubler says analyst

The grey market has pegged Tata Tech’s IPO listing gains at over 70% — which is the most bullish it has been, this season. Also, its stellar subscription numbers might push people who have applied for the stock not allotted to try and buy on the first day.

Tata Technologies IPO which broke a record with the number of applications is expected. The QIB portion of the issue was subscribed 200 times over the shares on offer. The non-institutional and retail investors’ interest paled in comparison as these quotas were subscribed 62 times and 16 times respectively.

Thanks to the buzz, an analyst said that it could provide super-premium listing gains. Not only does the engineering R&D player have a well-established business model, the Tata name worked wonders for the interest in the stock.

“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.