Tata Technologies shares likely to list at 75% premium against IPO price: Why analysts expect a stellar debut tomorrow

livemint.com:

Tata Technologies IPO: The Tata Group's much-awaited initial public offering (IPO) received overwhelming response from investors during its three-day subscription period last week. Shares of Tata Technologies is all set to debt on stock exchanges BSE and NSE on Thursday, November 30. Since, the companies off late have been switching to T+3 norms the allotment and listing date are being preponed.

Market experts on D-Street expect a blockbuster listing tomorrow and project Tata Technologies shares to list at over 75 per cent premium against its issue price of ₹500 per equity share. Tata Technologies IPO was subscribed 69.43 times on its third and the last day of the bidding process. “Considering overwhelming subscription demand and investor friendly pricing, Tata Technologies could see a strong listing gain of over 75 per cent against the issue price of ₹500 per share,'' said Prashanth Tapse, Research Analyst, Sr VP Research, Mehta Equities.

There is a high possibility that Tata Technologies can be a doubler candidate post listing, according to Tapse. Analysts said that the Tata Group's issue has received strong response from investors and this could be the possible reason for rise in grey market sentiments. Tata Technologies IPO GMP or grey market premium is ₹440 per share.

This indicates that Tata Technologies IPO share price were trading at a premium of ₹440 on Wednesday, according to investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Tata Technologies is ₹940 apiece, which is 88 per cent higher than the IPO price of ₹500.