Tata Technologies share price: IPO to list today, bumper stock market debut expected

Tata Technologies share price update: Tata Technologies IPO is all set to list on the stock exchange today, and expectations are that the company will see a bumper listing. Current grey market pricing (GMP) indicates Tata Technologies trading at a premium of Rs 406, suggesting an 80%-plus potential listing gain. With an upper price band of Rs 500, expectations hover around an 82% premium upon listing.
Three companies—Tata Technologies, Gandhar Oil, and Fedbank Financial—are set to enter the stock exchanges today.According to grey market trends, Tata Technologies appears to be the leading performer in the ongoingIPO excitement.
It’s crucial to remember that grey market premiums serve as an indicator of the company’s shares in the unlisted market and can fluctuate quickly. However, considering the existing GMP trends and potential demand for the shares after listing, there’s anticipation for the stock to potentially double its IPO price on its debut day, according to an ET report.

Tata Technologies IPO listing: What Analysts Say

Analysts are bullish about the company’s immediate performance. With strong investor interest and the company’s robust profile, Tata Technologies appears set for a successful stock market debut, believes Shivani Nyati, Head of Wealth at Swastika Investmart.
Prashanth Tapse of Mehta Equities says that considering investor demand and investor-friendly pricing, coupled with the Tata Group’s legacy, a significant listing gain of 75%+ can be anticipated.
Apart from potential listing gains, analysts view the company favorably in the long term as well.
Nyati emphasized that the global presence and expertise in engineering solutions for Tata Technologies have positioned it as a preferred partner for multinational corporations across industries. Its diversified customer base, efficient delivery network, and focus on innovation solidify its competitive edge, Nyati says.

About Tata Technologies IPO

The Rs 3,042 crore Tata Technologies IPO received bids worth over Rs 1.5 lakh crore, with an overall subscription of nearly 70 times the shares available.
The retail individual investors (RIIs) category was subscribed 16 times, qualified institutional buyers saw a subscription of 203 times, and NII observed a subscription of 62 times.
The IPO drew significant attention due to attractive valuations, Tata Group’s strong brand value, and comparative valuation metrics with peers, analysts said.
Tata Technologies stands out with a favorable FY23 PE ratio compared to peers like KPIT, L&T Technology Services, and Tata Elxsi. The company has showcased superior financial growth over FY21-23.
Primarily focused on pure-play manufacturing-focused engineering research and development, Tata Technologies is engaged with top spenders in the automotive and new energy sectors.
For the six-month period ending September, the company’s total income surged 35% to Rs 2,587 crore, and net profit increased by 36% to Rs 352 crore.