A wealth doubler? Tata Technologies shares to list on November 30
Tata Technologies will list on the exchanges on Thursday, nearly 20 years after a company from Tata Group (TCS) debuted at the bourses.
The GMP of the company is strong at Rs 400, which indicates robust debut with 80% premium. There is a high possibility as per street assumption that Tata Technologies can be a wealth doubler candidate post listing.
Listing gains aside, analysts are quite bullish on the company even from a long-term perspective.
“Technologies' diversified customer portfolio, robust delivery network, and emphasis on innovation further solidify its competitive advantage," said Shivani Nyati, Head of Wealth, Swastika Investmart.
The Rs 3,042-cr IPO of Tata Technologies received bids worth over Rs 1.5 lakh crore.
The overall subscription was nearly 70 times the shares on offer.
The quota reserved for retail individual investors (RIIs) was subscribed 16 times, qualified institutional buyers 203 times, and NII 62 times.
Analysts said the strong response for the IPO was due to attractive valuations compared to peers and Tata lineage, which enjoys strong brand value.
Tata Tech's FY23 PE ratio stands at 32-33x, as against 105x for KPIT, 40x for L&T Technology Services, and 70x for Tata Elxsi. The company has also outpaced all of its peers when it comes to financial growth over FY21-23.
Tata Technologies is a pure-play manufacturing-focused engineering research and development (ER&D) company, primarily focused on the automotive industry.
They are currently engaged with 7 out of the top-10 automotive ER&D spenders and 5 out of the 10 prominent new energy ER&D spenders in 2022.
