Tata Tech Share: This Tata Stock Skyrockets By 180% On Listing Day From IPO Price; Accumulate Or Sell?

After 19 years, Tata Group-backed yet another IT company debuted on stock exchanges on November 30. It would be Tata Technologies IPO that made a bumper listing in four digits, becoming the first stock to go public after TCS in 2004. Listing at a massive premium. Tata Technologies' share price gained by at least 180% on BSE and NSE compared to its IPO issue price on D-Day. Experts recommended accumulating the stock further for long-term gains.

On November 39th, Tata Technologies was listed at a premium of 139.99% on BSE and 140% on NSE. The stock touched a new 52-week high of Rs 1,400 on both exchanges, registering an upside of a massive 180% from its IPO issue price of Rs 500.

On BSE, Tata Technologies IPO settled at Rs 1,314.25 apiece, up by Rs 814.25 or 162.85%. On NSE, the stock ended at Rs 1,326.70 apiece, advancing by Rs 826.7 or 165.34%.

Compared to its listing price, Tata Tech settled with gains of 9.53% on BSE and 10.6% on NSE.

What should investors do with Tata Technologies IPO:

Prashanth Tapse, Senior VP (Research), Mehta Equities said, "As expected, a bumper listing above our expectation respecting the legacy of the TATA brand. After witnessing a remarkable subscription demand. Tata Technologies garnered significant attention in the stock market among the 5 IPOs. Considering overwhelming investors' demand along with investors friendly pricing indicating Tata Group legacy to reward shareholders. Given the growth potential in outsourcing, the business model would be in great demand going forward and considering all factors, we recommend allotted investors to book 50% profits over and above Rs 1400 and retain rest of the holding for long term considering healthy long term returns post listing and for those investors who failed to get allotments in the public offer can accumulate Tata Technologies on every dips post listing for long term."

Similarly, Dhruv Mudaraddi, Research Analyst, StoxBox said, "As per our expectations, shares of Tata Technologies saw a strong listing debut today where investors witnessed a 140% gain on the issue price of Rs. 500 per share. Being part of a well-recognised group and experienced management team, the company has rich experience in the domain of automotive industry."

Mudaraddi added, "The increase in expenditure on global Engineering R&D and its outsourcing to Indian Engineering Services Providers along with the rise in demand for autonomous and connected technologies will benefit the company in the long run. The demand for the company's solutions would be further aided by a shift to EVs from traditional engines by global and Indian automakers. Hence, we recommend investors who have been allotted shares to hold them for a long-term perspective."

Tata Technologies IPO:

Tata Tech's IPO oversubscribed by 69.43 times with bids of 312.65 crore equity shares against its offered size. At the upper price band, the bids received are worth over Rs 1.56 lakh crore. The IPO was entirely offer for sale (OFS) of up to 60,850,278 equity shares which included anchor investors portion as well. In this IPO, Tata Motors was offloading up to 46,275,000 equity shares. The company looked to raise up to Rs 3,042.51 crore, and has fixed price bands of Rs 475 to Rs 500 per share.

However, the IPO price band was fixed at Rs 500 per share later on. The IPO was launched from November 22nd to 24th.

On stock exchanges, Tata Technologies is rivalling another Tata-backed stock Tata Elxsi which is the leading design and technology services provider for Automotive, Broadcast, Communications, Healthcare, and Transportation -- who would be a competitor of Tata Technologies in the midcap basket. Other peers are KPIT Technologies, Cyient and L&T Technology Services.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.