Multibagger on Debut! Tata Technologies shares list at 140% premium over issue price
Tata Technologies listed at a premium of 140% (up Rs 700) on the exchanges on Thursday. The stock debuted at Rs 1200 on NSE and BSE as against an issue price of Rs 500.
Ahead of the listing, the shares commanded a premium of Rs 406 in the unlisted market.
Listing gains aside, analysts are quite bullish on the company even from a long-term perspective.
«The company's global presence and expertise in engineering solutions have positioned it as a preferred partner for multinational corporations across diverse industries.
Its diversified customer portfolio, robust delivery network, and emphasis on innovation further solidify its competitive advantage,» Shivani Nyati of Swastika Investmart said.
The Rs 3,042-crore 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 to 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. It generates 80% from services, 11% from products, and 9% from education as of
