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Business News/ Markets / Ipo/  Why Tata Technologies IPO applicants should apply for IREDA IPO too — explained with GMP, other details

Why Tata Technologies IPO applicants should apply for IREDA IPO too — explained with GMP, other details

  • Tata Technologies IPO GMP today is 351 whereas IREDA IPO GMP today is 7, say market observers

Tata Technologies IPO vs IREDA IPO: One should look at possiblity of share allotment ahead of the possible listing gain, say market observers.

Tata Technologies IPO vs IREDA IPO: The public issue of Indian Renewable Energy Development Agency (IREDA) and Tata Technologies Ltd have hit primary market and both public issues have received strong response from investors. However, for those investors who have limited amount for investing, it has become quite tricky as they have to choose either of these two (infact five as three more mainboard IPOs — Fedbank Financial Services IPO, Gandhar Oil Refinery IPO and Flair Writing Industries IPO — are also available for bidding).

Market observers said that Tata Technologies IPO GMP and balance sheet signals whopping listing gain and hence investors are expecte to pump their money in Tata Technologies IPO. However, they maintained that one should not look at the possible listing gain only while choosing either of the two IPOs as possiblity of share allotment is also an important factor and one should look at this factor before looking at any other factor while choosing either of these IPOs.

Tata Technologies IPO vs IREDA IPO

Speaking on these two IPOs, Astha Jain, Senior Research Analyst at Hem Securities said, "If we look at the financials of these two companies, Tata Technologies IPO is expected to give higher listing premium to its allottees but IREDA IPO would also give good listing premium to the allottees."

On factors to look at before applying for these IPOs, Arun Kejriwal, Foundet at Kejriwal Research and Investment Services said, "Tata Technologies IPO is expected to give best return to the allottees amongst the five mainboard IPOs opening this week. However, listing premium expected from these public issues should not be the only criteria while applying because one would get listing premium only when shares of the company gets allotted to the applicant. Hence, possiblility of share allotment is an important factor that one must look at while choosing either of these IPOs."

Also Read: Tata Technologies IPO vs IREDA IPO vs Gandhar Oil Refinery IPO: Which upcoming IPO is better?

Speaking on share allotment factor in regard to Tata Technologies IPO and IREDA IPO, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Tata Technologies IPO is smaller in size and it is expected to attract maximum liquidity available in the primary market. Hence, probability of substantial share allotment in Tata Technologies IPO is lowest among all five IPOs hitting primary market this week."

Why you should apply for IREDA IPO too?

On how smart investors would use their money in current primary market, Arun Kejriwal said, "Genius don't do different things, they do things differently. An IPO investor's top pririty while applying for any of these IPOs would be share allotment. Off course listing premium is also important but it would come only after having shares of the company in one's demat account. So, smart investors are expected to keep higher amoung for Tata Technologies IPO as it is expected to give highest listing premium to its allottees. But, IREDA share price is also expected to open at strong premium and grey market is also signaling about that. So, my advice for a retail investor is to keep some money for IREDA IPO too. One should not put its entier money in Tata Technologies IPO only."

Tata Technologies IPO GMP vs IREDA IPO GMP

According to market observers, shares of Tata Technologies Ltd are available at a premium of 352 in grey market today whereas IREDA share is trading at a premium of 10 in unlisted stock market. This means, Tata Technologies IPO GMP today is signaling around 70 per cent listing premium for allottees whereas IREDA IPO GMP today is signaling over 30 per cent listing gain for the allottees. However, this would become a reality only when one gets shares of the company via allotment process after applying for the public issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Asit Manohar

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