Tata Tech closes 165% higher on market debut: A look at 5 stocks that beat the Tata Group stock at listing gains | Mint
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Business News/ Markets / Ipo/  Tata Tech closes 165% higher on market debut: A look at 5 stocks that beat the Tata Group stock at listing gains
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Tata Tech closes 165% higher on market debut: A look at 5 stocks that beat the Tata Group stock at listing gains

The Tata Tech listing was the best listing of 2023 and also the best since November 2021. However, overall till date, some stocks have performed better than this Tata Group stock in listing gains.

The Tata Tech listing was the best listing of 2023 and the best since November 2021. (iStock)Premium
The Tata Tech listing was the best listing of 2023 and the best since November 2021. (iStock)

Tata Technologies, a subsidiary of Tata Motors (TML), made an impressive market debut on Thursday, November 30, listing at a 140 percent premium to the issue price of 500. The stock opened at 1,200 on the NSE and 1199.95 on the BSE.

The stock ended the listing day at 1,327 on the NSE, a 165.4 percent premium to the IPO price of 500, and at 1,326.25 on the BSE, a 165.25 percent premium.

The stock jumped as much as 180 percent to 1,400 in intra-day deals. Tata Technologies' initial public offering was fully subscribed to within 36 minutes on the first day of opening, witnessing robust demand for the first public issue from the Tata Group since 2004.

The Tata Tech listing was the best listing of 2023 and also the best since November 2021.

However, overall till date, some stocks have performed better than this Tata Group stock in listing gains. Let's take a look at the top listings in the Indian stock market.

FCS Software Solutions: FCS Software Solutions gave the highest listing gains ever, debuting at a premium of 200 percent in the year 2005 at 150 versus an IPO price of 50.

FCS Software Solutions Limited provides software development and marketing, and support services to corporate business entities in the BPO, software development, e-learning, and other related information technology (IT) enabled services in India and the United States.

Paras Defence: It was the second biggest debut, listing at 475, a 171 percent premium to the issue price of 175. The stock listed on October 1, 2021. Till date, it has soared 300 percent from its IPO price.

Paras Defence has a niche product profile & technology and is one of the leading "Indigenously Designed Developed and Manufactured" category private sector companies in India. Hence, experts feel the company is expected to benefit from the "Atmanirbhar Bharat" and "Make in India" initiatives by the government.

Salasar Techno Engineering: It listed at a premium of 152 percent at 272.10 versus the IPO price of 108 on the Indian stock market on July 25, 2017.

Salasar Techno Engineering Limited manufactures and sells galvanised and non-galvanised steel structures in India and internationally. It operates in two segments, Steel Structure, and Engineering Procurement & Construction. It was incorporated in 2001 and is based in Ghaziabad, India.

Indraprastha Gas: It debuted at 120, a 150 percent premium to the issue price of 48. It was listed on December 26, 2003, and has surged over 713 percent from its IPO price till date.

Indraprastha Gas Limited engages in the distribution of natural gas in India. The company supplies compressed natural gas (CNG) to the transport sector; and piped natural gas to domestic, commercial, and industrial sectors. It operates CNG stations, as well as steel pipeline and MDPE networks. It was incorporated in 1998 and is headquartered in New Delhi, India.

Astron Paper and Board Mills: Shares of Astron Paper and Board Mills saw a bumper listing in December 2017 as the stock debuted at a premium of 141 percent at 120.50.

Astron Paper & Board Mill Limited manufactures and sells a range of kraft papers from waste paper for the packaging industry in India. The company offers high-ring crust test papers, kraft liners, test liners, and corrugated medium papers. It also exports its products. The company was incorporated in 2010 and is headquartered in Ahmedabad, India.

Going ahead experts see the IPO trend continuing. "IPOs, their quantum, and their success are a function of how markets are doing. So, in the absolute near term, the trend should continue," said Manish Jain, Fund Manager, Coffee Can PMS, Ambit Asset Management.

However, one must look at the sustainability, moat, valuation, and quality of promoters. It's always about quality, don't get swayed by the flow, Jain cautioned.

Meanwhile, Jitesh Agarwal, Founder of Treelife, also warned that overvaluation in IPOs is surely a concern as it can lead to unrealistic expectations and subsequent market corrections which could erode investor wealth, especially retail investors'. Investors should be cautious and conduct thorough research to understand the true value of the company against its market price.

Many investors end up subscribing to IPOs based on the brand value however it is necessary to evaluate the following factors before investing in a company - the company’s current financial health, industry prospects, market competition, credibility of the management team, and offer price in relation to the company’s valuation, he advised investors.

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Published: 30 Nov 2023, 03:53 PM IST
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