The stock opened at Rs 1,200 on the National Stock Exchange, higher by 140 percent over the issue price of Rs 500 per share and touched a record high of Rs 1,400 in initial trade
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Tata Technologies, the first IPO debut from the Tata Group in more than 19 years, has recorded the third-best listing day closing gains among the IPO debuts in the history of the Indian capital market. In fact, the debut price on November 30 was way ahead of analysts’ expectations as well as far above the grey market investors quoted.
The stock opened at Rs 1,200 on the National Stock Exchange, higher by 140 percent over the issue price of Rs 500 per share and touched a record high of Rs 1,400 in initial trade. It saw some profit-taking at the higher levels but did not fall below Rs 1,300 throughout the session, signalling the strong appetite from investors despite the bad news floated recently.
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Even the grey market, before the listing day, fell by around 10 percent on reports that Vietnamese EV manufacturer VinFast, the Nasdaq-listed entity, and one of the top 5 clients of Tata Technologies, lost more than 90 percent in its market value from highs. The carmaker launched an IPO in the US in August and saw its shares surge as much as 700 percent after its debut.
Despite this, Tata Technologies had a blockbuster debut and closed at Rs 1,313, up 162.60 percent with a trading volume of 4.66 crore equity shares on the NSE, while on the BSE, it settled at Rs 1,314.25 (up 162.85 percent), with 28.47 lakh volumes.
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The Tata Motors’ subsidiary clocked the biggest listing day closing gains in the current calendar year and marked the third biggest gains (on a closing basis on debut) in the history of the primary market in India.
In fact, it is the first company to hit the century mark since the last calendar year (2022), on debut, which means not a single company, apart from Tata Technologies, had a 100 percent upward journey in 2023.
Ideaforge Technology was at the second spot in terms of listing day closing gains in 2023 with a 92.78 percent rally, followed by Utkarsh Small Finance Bank (91.76 percent), Indian Renewable Energy Development Agency (87.47 percent), and Netweb Technologies India (82.10 percent).
On the top to down list in IPO history, Sigachi Industries recorded the biggest ever listing day gains at 270 percent on November 15, 2021, and Paras Defence and Space Technologies was at the second number with 185 percent surge in share price on October 1, 2021.
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“It was a bumper listing above our expectation respecting the legacy of TATA brand along with investors friendly pricing indicating Tata Group legacy to reward shareholders,” Prashanth Tapse, research analyst, senior VP research at Mehta Equities said.
Given the growth potential in outsourcing, the business model would be in great demand going forward, he believes.
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Shivani Nyati, Head of Wealth at Swastika Investmart also feels this robust investor interest reflects the company’s strong fundamentals and promising growth prospects and of course the legacy of the Tata group.
In fact, the stellar performance was despite it being an entire offer-for-sale issue by the company. The global engineering services company raised Rs 3,042.51 crore via public issue of over 6.08 crore shares at the higher end of the price band of Rs 475-500 per share. The offer was subscribed 69.43 times during November 22-24.
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Apart from Tata Technologies, Gandhar Oil Refinery India and Fedbank Financial Services also made a debut on the bourses on Thursday. Gandhar closed with 78.34 percent gains, becoming the sixth biggest gainer in 2023, at Rs 301.40, while Fedbank showed muted trade, up 0.18 percent at Rs 140.25.
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