Tata Technologies IPO: Stock fetching nearly 80% premium in unlisted market. Can it double on listing day?
If the current trends sustain analysts expect the company to double investors' wealth on listing day itself.
The robust demand was also seen in the subscription numbers as the issue was booked over 6 times on the first day itself. The IPO, which closes on November 24, is the first from Tata Group since TCS, which is also one of the reasons why the issue is generating considerable buzz.
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Analysts are overwhelmingly positive on the issue and, in fact, prefer the IPO over four others.
The fact that there is a lineage from the Tata Group is doing wonders for the public offer in the market.
«In the ongoing mela of IPOs, we prefer to advise investors to subscribe to Tata Technologies based on the company's growth potential. We believe Tata Technologies can generate healthy returns in the long term,» said Prashanth Tapse of Mehta Equities.
The IPO is priced in the range of Rs 475-500, where investors can bid for a minimum of 30 shares in one lot.
At the upper price band, the issue size is about Rs 3,042 crore.
The public offer is entirely an offer for sale (OFS) of 6.08 crore shares, under which, Tata Motors, Alpha TC Holdings and Tata Capital Growth Fund will participate.
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.
