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The much-anticipated initial public offering (IPO) from the Tata Group. Tata Technologies IPO, has witnessed a remarkable reception from investors during its three-day subscription period last week. The company's shares are poised to make their debut on the BSE and NSE on Thursday, November 30. Notably, the recent shift to T+3 norms has resulted in the preponement of the allotment and listing dates.
Investors and market experts are eagerly anticipating a blockbuster listing, with projections suggesting Tata Technologies shares. Could debut at a premium of more than 75% against their issue price of ₹500 per equity share. The IPO achieved a subscription rate of 69.43 times on the third and final day of the bidding process.
Anticipation of Strong Debut:
Prashanth Tapse, Research Analyst and Senior VP Research at Mehta Equities. Expressed optimism about a strong listing gain, stating. "Considering overwhelming subscription demand and investor-friendly pricing. Tata Technologies could see a strong listing gain of over 75 per cent against the issue price of ₹500 per share." Tapse even suggested the potential for Tata Technologies to become a doubler candidate post-listing.
Market observers emphasized the investor-friendly reputation of the Tata Group. Noting a sense of trust among retail investors who subscribed to the issue. Tapse from Mehta Equities justified the expected premium. Attributing it to the TATA parentage tag. Which holds a special place among investors, along with the company's well-established global business model generating healthy margins.
Analysts are banking on Tata Technologies' strong track record of growth and profitability. Citing its global presence and expertise in engineering solutions. Making it a preferred partner for multinational corporations across diverse industries. With a P/E ratio of 18.2x, the IPO is considered fairly priced, reflecting. The company's robust fundamentals and promising growth prospects.
Investor Confidence:
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, remarked. "Given the immense investor interest and the company's robust capabilities. Tata Technologies is poised for a successful listing on the Indian stock exchanges, and it will be interesting to witness this listing."
The share allotment for Tata Technologies IPO has been finalize, and investors are advised to check the IPO allotment status on the registrar's portal. Link Intime India Private Ltd. Those allotted shares are encouraged to book profits on a portion of their holdings. While retaining the rest for the long term.
Tata Technologies aimed to raise ₹3,042.51 crore from the entirely offer-for-sale (OFS) IPO. Consisting of 6.09 crore equity shares by the promoters and investors. The IPO price band ranged from ₹475 to ₹500 per equity share, concluding. The three-day bidding process on November 24.
In the grey market, the Tata Technologies IPO garnered a strong response, with a grey market premium (GMP) of ₹440 per share. This indicates investors' willingness to pay more than the issue price. Considering the upper end of the IPO price band and the current premium in the grey market. The estimated listing price of Tata Technologies is projected to be ₹940 apiece. Reflecting an 88% increase from the IPO price of ₹500.
Solid Fundamentals:
The eagerly awaited initial public offering (IPO) from the Tata Group. Tata Technologies, has not only garnered an overwhelming response from investors but has also fueled high expectations for a robust market debut. Scheduled to commence trading on the BSE and NSE on Thursday, November 30. The IPO has witnessed a surge in interest, thanks in part to the recent transition to T+3 norms, prompting an earlier allotment and listing date.
Market analysts on Dalal Street are anticipating a stellar market debut for Tata Technologies, with projections suggesting a potential premium of over 75% against the issue price of ₹500 per equity share. Prashanth Tapse, a Research Analyst and Senior VP Research at Mehta Equities. Commented on the strong demand, stating, "Considering overwhelming subscription demand and investor-friendly pricing, Tata Technologies could see a strong listing gain of over 75 per cent against the issue price of ₹500 per share." Tapse even hinted at the possibility of Tata Technologies becoming a standout performer post-listing.
Key factors contributing to the optimistic outlook include Tata's investor-friendly image. With the conglomerate enjoying a unique level of trust among retail investors. Who subscribed to the issue. Mehta Equities' Tapse further justified the anticipated premium, citing. The TATA parentage tag and the company's well-established global business model generating robust margins.
Parentage Advantage:
Analysts are also placing confidence in Tata Technologies' track record of consistent growth and profitability, emphasizing. Its global presence and expertise in providing engineering solutions to multinational corporations across various industries. With a reasonable P/E ratio of 18.2x, the IPO is consider to be price fairly. Reflecting the company's strong fundamentals and promising growth prospects.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd. Highlighted the immense investor interest and the company's robust capabilities. Expressing anticipation for a successful listing on the Indian stock exchanges.
The share allotment for Tata Technologies IPO has been finalize, and investors are advise to check the IPO allotment status on the registrar's portal. Link Intime India Private Ltd. Those fortunate enough to receive allotments are encourage to consider booking profits on a portion of their holdings. While retaining the rest for the long term.
Tata Technologies aimed to raise ₹3,042.51 crore from the IPO through an entirely offer-for-sale (OFS) structure, involving 6.09 crore equity shares from promoters and investors. The IPO price band ranged from ₹475 to ₹500 per equity share, concluding the three-day bidding process on November 24.
