Tata Tech's stock skyrockets, making investors richer with a whopping 140% premium over the IPO price in an impressive market debut
The Tata Tech IPO has set the D-street ablaze with excitement as its shares debuted with a substantial premium over the issue price. The initial offering witnessed a robust entry into the stock market on Thursday, November 30, with shares opening at Rs 1,200 on both the domestic bourses, NSE and BSE. This marked a substantial 140 per cent premium against the issue price of Rs 500.
The offering solely comprised a sale of 6.08 crore shares through an offer-for-sale (OFS) by the promoter Tata Motors, along with investors Alpha TC Holdings and Tata Capital Growth Fund 1. The pricing range for the issue, totaling Rs 3,042.52 crore, was set at Rs 475-500 per share.
The initial public offering (IPO) from the Tata Group, the first in more than 19 years, witnessed a robust subscription of 69.43 times.
Tata Technologies specializes as a dedicated engineering research and development (ER&D) company with a primary focus on the automotive sector, making it a pure-play entity in manufacturing-oriented services.
"Tata Technologies boasts a strong track record of growth and profitability. 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," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Meanwhile, the stock market indices were experiencing a decline on Thursday, with marginal losses. In the morning trade session, the Sensex witnessed a decrease of 100 points, while the Nifty remained in the vicinity of the 20,000 mark.