Tata Technologies makes a blockbuster debut on bourses; 10 things you need to know

Tata Technologies IPO, Tata Technologies listing: Tata Technologies made a stellar debut on the bourses on Thursday, November 30, with a 140 per cent premium over the issue price of Rs 500. The scrip of Tata Technologies was listed at Rs 1,200 on the NSE and Rs 1,199.95 on the BSE. Last seen, the scrip was trading at Rs 1,318.80 on the BSE, and its market capitalisation stood at Rs 53,592.87 crore.

Here are a few things you need to know about the technology arm of the Tata Group and its public issue.

1. Tata Technologies Limited is a part of the Tata Group and is a global engineering services company.

2. It is a subsidiary of Tata Motors, one of the leading automotive players in India.

3. Tata Technologies is in the business of providing product development and digital solution services to global OEM and Tier-1 suppliers.

4. It has a total of 18 global delivery centres at present, with 11,000 employees.

5. Tata Technologies raised Rs 791 crore from 67 anchor investors ahead of its IPO.

6. The company had issued 1.58 crore shares at Rs 500 each.

7. Tata Technologies IPO was launched 19 years after the Tata Consultancy Services (TCS) IPO in 2004.

8. In October, promoter Tata Motors sold a 9 per cent stake to TPG Rise Climate SF at Rs 401.81/share (total Rs 1,467 crore).

9. Tata Technologies' valuation increased by Rs 3,000 to Rs 4,000 crore (18–25 per cent) in the last month.

10. The IPO opened on November 24, 2023.

Zee Business Managing Editor Anil Singhvi listed out the following positives of the company 

-Strong and experienced promoters

-Deep relationships with clients across the Globe

-Strong digital and technology skills

-Debt-free company with strong cash flow

-Impressive financial track record

-Strong growth prospects

-Very attractive valuations

-Stock may double very soon

Tata Technologies listing: Experts' Take

“As expected, a bumper listing above our expectations respects the legacy of the Tata brand. After witnessing a remarkable subscription demand, Tata Technologies garnered significant attention in the stock market among the five IPOs. Considering overwhelming investors' demand along with investor-friendly pricing indicates Tata Group's legacy to reward shareholders," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Tapse added that given the growth potential in outsourcing, the business model would be in great demand going forward, and considering all factors, we recommend allotted investors book 50 per cent profits over and above Rs 1,400 and retain the rest of the holding for the long term, considering healthy long-term returns post-listing. For those investors who failed to get allotments in the public offer, they can accumulate Tata Technologies on every dip post-listing for the long term.

"We believe that Tata Technologies' strong listing was supported by Tata parentage entity and its unique business model. The company remains a preferred choice as an Indian Engineering Service Provider (ESP) Also, the increasing demand for autonomous and connected technologies globally led by safety measures will keep the business prospects of the company at the sweet spot for the long term. We suggest the investors to 'hold' the issue as a long-term view on IPO according to their risk appetite," said Narendra Solanki, Head - Fundamental Research, Anand Rathi Shares and Stock Brokers.

"It was a landmark day for the capital markets as we saw Tata Technologies make its debut on the bourse, giving investors reason to cheer with the listing at Rs 1200, which was a 140 per cent premium over its issue price of Rs 500. The euphoria continued as it made a day high of Rs 1400, taking its valuation to Rs 53,063 crore," said spokesperson of Bigul.

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