Tata Technologies Skyrockets 168% Post Blockbuster Debut, Emerges as the Best Listing in the Last Two Years
Tata Technologies Triples in Value on Debut, Sets New Record for IPOs Over Rs 500 Crore
The stock hit a high of Rs 1,400 and a low of Rs 1,200 on the National Stock Exchange, where equity of over Rs 6,000 crore was traded.
Tata Tech’s Rs 3,042-crore IPO, the first by a Tata Group firm in nearly two decades, had garnered nearly 70 times subscription, with bids exceeding Rs 1.5 trillion.
The employees of Tata Technologies and the shareholders of Tata Motors bought 3.7 times and 29.2 times their allotted quota, respectively.
While the 205 IPOs in India so far in 2023 have mostly been small — only two raised more than $500 million — about 80% of the newcomers are trading above their offer prices versus 62% in Asia.
The IPO witnessed an unprecedented 7.3 million applications, marking the highest number for a domestic offering. Due to overwhelming demand, only a fortunate minority of applicants secured an allotment.
Tata Technologies, a subsidiary of Tata Motors and owner of the Jaguar Land Rover brand, experienced a reduction in Tata Motors' stake from 64.79% to 53.39% post the IPO..
The inclusion of Tata Technologies in the stock market is a favorable advancement for both the company and engineering services sector. Investors who engaged in the IPO are advised to retaining their shares for the long time.
While Tata Technologies has historically excelled in body engineering, it is now expanding its expertise into high-growth sectors such as electric vehicle (EV) development, connected and autonomous cars, and embedded electronics.