Tata Technologies entered Dalal Street on Thursday, debuting at Rs 1,200 per share—a 140% premium over its issue price of Rs 500, led by the Tata Group.
Tata Technologies Ltd witnessed an approximately 8% decline in its shares in the early Friday trading session, as traders sought to secure profits in the Tata Group's recent entrant on Dalal Street. The stock experienced a significant drop in its second trading session, approaching its listing price.
On Friday, Tata Tech shares declined by 8% to reach Rs 1,212.80, down from its closing price of Rs 1,314.25 on Thursday, its inaugural trading session. The overall market capitalization fell below the Rs 50,000 crore threshold. Nevertheless, there was a slight recovery as the shares regained the Rs 50,000 crore market capitalization mark.
On Friday, Tata Tech shares experienced an 8% decline, reaching Rs 1,212.80, in contrast to its closing value of Rs 1,314.25 on Thursday, which marked its initial trading session. The total market capitalization dipped below the Rs 50,000 crore mark. However, there was a slight recovery, and the shares regained the Rs 50,000 crore market cap threshold.
Tata Technologies made its entry onto Dalal Street on Thursday, with the Tata Group-led company being listed at Rs 1,200 per share—a premium of 140% over its issue price of Rs 500. The stock further surged by 17% to Rs 1,400, resulting in an overall gain of 180% over the issue price.
In its trading debut, Tata Technologies shares more than doubled, marking it as potentially the most lucrative listing gains for any Indian initial public offering of similar size, according to Amit Goel, Co-Founder & Chief Global Strategist at Pace 360.
Tata Tech's valuation seems to align with its peers, but Goel expresses concerns about its sustainability. He recommends profit-taking in the coming weeks, anticipating better entry points for long-term investors in the next 5-6 months when the stock may be available at more affordable valuations.
Tata Technologies represents the Tata Group's first IPO in nearly two decades. The conglomerate's last IPO was the launch of the initial public offer for India's largest software exporter, Tata Consultancy Services, in 2004.
To recap, Tata Technologies conducted its IPO, selling shares in the price range of Rs 475-500 each, with a lot size of 30 shares. The bidding window was open from November 22 to November 24, aiming to raise a total of Rs 3,042.51 crore. The entire offering consisted of an offer for sale by the company's promoters and other selling shareholders.
The IPO witnessed significant demand across all investor categories, attracting 73,58,222 bids totaling more than Rs 1 lakh crore and achieving an overall subscription of 69.43 times. The robust bidding, especially from qualified institutional bidders (QIBs), resulted in their portion being subscribed an impressive 203.41 times.
