Tata Technologies IPO listing tomorrow: Here's what the experts expect

Tata Technologies IPO subscription: It was subscribed 69.43 times as of the final day of subscription on November 24, driven by high participation from institutional buyers

The initial public offering (IPO) of Tata Technologies is set to be listed on the bourses on November 30. It is the first IPO listing from the Tata Group after over 19 years. According to experts, the listing is expected to make a blockbuster debut in the Indian stock markets. Tata Consultancy Services was the group's last IPO in 2004.

"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 Rs 500 per share. There is a high possibility that Tata Technologies can be a doubler candidate post-listing," said Prashanth Tapse, research analyst and senior vice president of Research at Mehta Equities Ltd.

 

Adding to this, Shivani Nyati, head of Wealth at Swastika Investmart Ltd, said, "Given the immense investor interest and the company's robust capabilities, Tata Technologies is poised for a successful listing on the Indian stock exchanges and it will be interesting to witness this listing."

Tata Tech IPO: The reasons experts are bullish

According to Tapse, the listing premium is justified mainly on the back of the Tata parentage tag that enjoys first preference among the investor community and its unique, well-established global business model, which has been generating healthy margins in the sector it serves.

"Given the growth potential in outsourcing, the business model would be in great demand going forward," he said.

Experts also said that the company's global presence and expertise in engineering solutions have positioned it as a preferred partner for multinational corporations across diverse industries.

"Tata Technologies' diversified customer portfolio, robust delivery network, and emphasis on innovation further solidify its competitive advantage," Nyati said.

In a note, Phillip Capital attributed the company's strong financials to its auto vertical.

"Its auto vertical has grown strongly at 44 per cent, 27 per cent and 15 per cent in FY22, FY23 and H1FY24, respectively. Tata Tech has traditionally been strong in body engineering, but it is adding capabilities in high-growth areas like EVs development, connected and autonomous cars, and embedded electronics," the note read.

"The valuations at offer have a cushion when you compare it to the listed peers. The company should continue to outperform over the coming years considering substantial global positioning and strategic focus towards the EV sector," added Divam Sharma, smallcase manager and co-founder at Green Portfolio.

In another report, Master Capital Services Ltd suggested investors invest in the stock. "Tata is known as an investor-friendly group and enjoys special preference amongst investors," it said.

However, Sharma added that recent news around the potential write-off of Vinfast Auto receivables can create short-term volatility.

Tata Technologies IPO price band

Tata Technologies had fixed the price band at Rs 475-500 per equity share for its Rs 3,042 crore IPO. Later, Tata Motors announced that the offer price, including the anchor investor offer price, had been set at Rs 500 per equity share.

Tata Technologies IPO subscription status

The public issue opened for public subscription on November 22 and ended on November 24. It was subscribed 69.43 times as on the final day of subscription on November 24, driven by high participation from institutional buyers. It was fully subscribed within minutes of opening for application on November 22.

The category for qualified institutional buyers (QIBs) was subscribed a mammoth 203.41 times, while the part meant for non-institutional investors attracted 62.11 times subscription. The quota for retail individual investors (RIIs) was subscribed 16.5 times.

Tata Technologies IPO GMP

According to Nyati, "The grey market premium (GMP) for Tata Technologies shares is currently Rs 320, indicating that the shares could list at around Rs 914 per share." This would mean listing at a premium of 82.8 per cent.

Tata Technologies IPO allotment: How do you check the status?

The Tata Tech IPO allotment will be announced on Wednesday. Here's how you can check it:

• Go to https://www.bseindia.com/investors/appli_check.aspx
• Select "Equity" in "Issue Type" and select Tata Technologies Ltd in "Issue Name"
• Fill in your application number or PAN number
• Now, click on "I'm not a robot" and Search
• The status will be displayed on the screen.