Tata Technologies Joins The Club Of Stocks With The Best Listing Gains Ever
The IPO jumped as much as 180% to Rs 1,400 apiece in early trade.
Tata Technologies Ltd. stock surged up to 180% over the issue price on the first day of trading, making it the best listing of the year. That also propelled it into the league of the best market debuts ever for Indian stocks.
Tata Technologies surpassed IdeaForge Technology Ltd.'s premium of 94.21% on its debut to rank at the top so far this year. The stock listed at Rs 1,200 apiece on the National Stock Exchange and Rs 1,199 per share on the BSE, a premium of 140% over its IPO price.
It jumped as much as 180% to Rs 1,400 apiece in early trade. The shares ended at a premium of 165.34% over the IPO price and gained 10.56% from its listing price to end at Rs 1,326.70 apiece.
Tata Technologies is also among the top ten listings of all time on the Indian bourses.
This list is led by Sigachi Industries Ltd., whose shares surged over threefold on debut. Paras Defence & Space Technologies Ltd. and Religare Enterprises Ltd. follow with gains of more than 180% by close on the opening day.
Tata Technologies' initial public offering was fully subscribed within 36 minutes on the first day of opening, and ended with subscription of 69.43 times by close. The bids were led by institutional investors (203.41 times), non-institutional investors (62.11 times), retail investors (16.50 times), employee reserved (3.7 times), and reservation portion shareholders (29.2 times).
Here's What Analysts Had To Say About The Debut
'One Of The Finest ER&D Plays'
"Tata Tech is one of the finest ER&D plays catering to complete product value chain in automotive and now focusing on defence, aerospace, and energy," said Gurmeet Chadha, managing partner and chief investment officer, Complete Circle Wealth Solutions LLP.
"At 150% plus premium, it trades at over 70 times earnings and bridges valuation gap with KPIT and Elxsi... I would hope to get better valuations in coming weeks/months to build a long-term position in my portfolio."
'Long-Term Investors Can Remain Invested'
"Tata Technologies Ltd. is a long-term play. At the current market price of Rs 1,337, the stock is trading at a P/E multiple of 75.6 times, which seems to be in line with the peers," according to Rajnath Yadav, research analyst at Choice Broking.
"Thus, short-term investors are advised to book profit, while long-term investors can remain invested. Long only investor's can consider for investment at this levels," he said.
