ipo watch of Tata Technologies | Experts estimate that the listing premium may exceed the issue price of Rs 500 per share by 75–80%
Experts predict that Tata Technologies ipo watch’ IPO, which is set for November 30th and is the first IPO listing from the Tata Group in nearly 19 years, might have a phenomenal start. They estimate that the listing premium will be between 75 and 80 percent above the Rs 500 issue price per share. Spread the word about this story.
Given the experts’ trust in strong percentages, great financial performance, strong IPO subscription numbers, and the potential for growth in the engineering services market, it is implied that the first price of the stock might be between Rs 875 and Rs 900 per share.
Tata Consultancy Services underwent its last initial public offering (IPO) in 2004.
Out of all the initial public offerings (IPOs) that were released this past week, Tata Technologies’ IPO attracted a lot of interest from the stock market and investors from a variety of backgrounds responded favorably, with a 69.4 times oversubscription from November 22–24. Last week saw the IPOs of Flair Writing Industries, Federal Bank Financial Services, Gandhar Oil Refinery, and IRDA.
The allocation to qualified institutional buyers exceeded the allotted quota by 203.41 times, marking the highest level since Netweb Technologies’ IPO in July of this year, when the QIB category saw a 220.69-fold oversubscription.
In the Tata ipo watch Motors subsidiary’s first public offering (IPO), high net worth people (non-institutional investors) subscribed 62.11 times their share. While Tata Technologies employees and Tata Motors stockholders purchased 3.7 times and 29.2 times their reserved percentages, respectively, retail investors also shown aggression by purchasing 16.5 times their allocated stake.
In comparison to the issue price of Rs 500 per share, shareholders may benefit from a listing gain of more than 75% with robust investor demand and advantageous pricing. Research analyst Prashant Tapse, Senior VP Research, Mehta Equities, believes there’s a good chance Tata Technologies would be competitive after listing.
According to ipo watch, the TATA brand’s strength—which is highly valued by investors and has a proven global business plan that produces good margins in the industry it serves—is the main cause of the remarkable listing premium.
Looking ahead, he sees a lot of demand for the company model because of the potential growth in outsourcing.
Furthermore, the gray market suggests that the listing premium may exceed the issue price by 80–82%.
According to market experts, original equipment manufacturer (OEM) Vaishwik Engineering Services, a global engineering service company based in Pune, and its Tier-1 suppliers conduct business at a premium of roughly 82% over the issue price in the gray market.
Before the IPO subscription period opens, the informal market has really raised the previously indicated premium to more than 70%.
‘We estimate Tata Technologies’ shares to be listed at a premium of roughly 80% over the issue price of Rs 500 per share,’ said StocksBox stock analyst Dhruv Mudarddhi.
At a P/E of 32.5x based on FY23 earnings, it is reasonably valued, according to experts. At the offering price, the market capitalization exceeds Rs 20,000 crore.
With a primary focus on the automobile industry, Tata Technologies ipo watch is a pure-play engineering research and development (ER&D) organization. It is expected to rank among the top five spenders on new energy ER&D by 2022 and is currently linked to seven of the top ten automotive ER&D spenders.
It is emerging as one of the main beneficiaries of the growing global spending on engineering research and development (ER&D). According to the Zinnov research, global ER&D investment is expected to rise from $1.81 trillion by 2022 to over $2.67 trillion by 2026.
Tata Technologies boasts a robust track record of growth and profitability, with revenue expanding at a CAGR of 36% and net profit growing at a CAGR of 60% between FY21 and FY23.
With the help of sales proposals from investors Tata Capital Growth Fund I and promoter Tata Motors, the business has raised Rs 3,042.51 crore through a public offering. As a result, it will not get any money from the proposal and, deducting IPO costs, will go to the selling shareholders. Except for IPO costs, the money will go to the stockholders who are selling their shares.”
MORE ABOUT "TATA Technology IPO share allotment"
Hi there, astute financiers and inquisitive minds! We’re exploring the highly anticipated world of TATA Technology’s initial public offering (IPO) share allotment today. Fasten your seatbelts, for we are going to delve into the thrill and opportunities surrounding this revolutionary occasion.
To start with, what’s all the hype about? As TATA Technology prepares to dominate the tech world, your opportunity to participate in the excitement is through the IPO share allotment. But do not worry; we are here to explain the finer points in terms that are as approachable as your morning brew.
Consider this: You are going to be involved in something big as an investor. Getting shares in the TATA Technology IPO is like becoming a part of the technological revolution that is changing industries and breaking barriers. It’s not just about numbers and graphs; it’s about joining a journey that will fundamentally alter the way we engage with and utilize technology.
Let’s now explain how the share allocation procedure works. This is the time when you find out how many shares you will own in your portfolio of this innovative company. Pretty exciting, huh? It’s similar to opening a present to see what’s inside—perhaps a glimpse of what lies ahead?
You could question, but why TATA Technology? Beyond the attraction of working for a cutting-edge tech company, TATA Technology offers a history of quality and innovation. This IPO is an opportunity to match your investment with a company that has been leading the way in technical innovation for many years.
Remember that there is more to IPO share allocation than just numbers on a screen as you navigate this complex world. It’s about becoming a part of a group of risk-takers, visionaries, and people who think that technology will have a significant impact on our future. Don’t miss out on the invitation to the tech party that comes with the TATA Technology IPO share allotment!
We’ll delve into the specifics of TATA Technology, the IPO procedure, and the implications for regular investors in our next blog entries. You have a seat reserved for the future of technology, so stay tuned, keep the enthusiasm building, and get ready to ride the wave of the TATA Technology IPO share allotment!