Tata Technologies, gearing up for a November 30 listing, witnesses an impressive 83% surge in the grey market premium (GMP) over its IPO price, reaching Rs 415. The strong demand, with a record-breaking 73.58 lakh applications, positions the company for substantial listing gains. Analysts foresee a listing price of Rs 915, reflecting the positive sentiment around Tata Tech stock.
The grey market, an unofficial trading platform preceding listing, serves as an indicator for potential listing prices. Tata Technologies, ranking as the third-largest IPO in 2023, outshines with its massive application count, surpassing LIC of India’s previous record. The public issue, valued at over Rs 1.56 lakh crore, witnessed a robust subscription of 69.43 times, showcasing substantial investor interest.
Prashanth Tapse, a senior vice-president at Mehta Equities, anticipates a listing gain of over 75%, highlighting Tata Technologies as a strong contender for doubling post-listing. With a fair P/E ratio of 18.2x and promising growth prospects, the IPO is poised for success on the Indian stock exchanges, according to Shivani Nyati, Head of Wealth at Swastika Investmart.
The issue, entirely an offer-for-sale (OFS) by promoters Tata Motors and investors Alpha TC Holdings and Tata Capital Growth Fund 1, raised Rs 3,042.52 crore. Tata Technologies, backed by Tata Motors, specializes in manufacturing-focused engineering, research, and development (ER&D), with a predominant focus on the automotive sector. Engaging with top spenders in automotive and new energy ER&D, the company stands as a key player in the industry’s innovation landscape.
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