Tata Technologies leads the IPO bumper listing, Gandhar Oil, FedFina shares follow the suit
- While Tata Technologies shares more than doubled investors' money upon listing, Gandhar Oil shares were also listed at a hefty premium of 76.33%. Fedbank Financial Services shares also gained momentum and traded higher after making a tepid debut.
Tata Technologies, Gandhar Oil Refinery India and Fedbank Financial Services shares marked their stock market debut on November 30, each witnessing notable premiums upon listing.
While Tata Technologies shares more than doubled investors' money upon listing, Gandhar Oil shares were also listed at a hefty premium of 76.33%. Fedbank Financial Services shares also gained momentum and traded higher after making a tepid debut.
The outlier among these was Tata Technologies, a subsidiary of Tata Motors. Tata Technologies shares got listed at ₹1,200 apiece on NSE, a premium of 140% to the issue price of ₹500 per share. This was the best listing in the Indian stock market since November 2021.
Read here: Tata Technologies share price makes blockbuster debut, stock lists at 140% premium at ₹1,200 on NSE
After this impressive stock market debut, Tata Technologies shares extended gains and made a high of ₹1,400 apiece on both the exchanges, thus, more than doubling investors’ wealth.
The ₹3,042.51 crore worth Tata Technologies IPO was the first IPO listing from the Tata Group in nearly two decades. The IPO received strong response from investors and was subscribed by a staggering 69.43 times.
Analysts are bullish on the stock given its strong fundamentals, growth prospects and Tata Group.
Also Read: Tata Technologies share price gains after giving multibagger return to allottees. Buy, sell or hold?
“This robust investor interest reflects the company's strong fundamentals and promising growth prospects and of course the legacy of the Tata group. The listing of Tata Technologies is a positive development for the company and the engineering services sector. Investors who participated in the IPO should consider holding on to their shares for the long term, as the company is well-positioned for sustained growth,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Rajnath Yadav, Research Analyst at Choice Broking also believes that Tata Technologies is a long term play.
“At CMP of ₹1,337, the stock is trading at a P/E multiple of 75.6x, which seems to be in-line to the peers. Thus short term investors are advised to book profit, while long term investors can remain invested,” Yadav said.
He advises long term investors to consider investment at this level.
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Meanwhile, Gandhar Oil Refinery India also made a strong debut on the bourses today with the stock getting listed at ₹298 apiece, a premium of 76.33% to the issue price of ₹169.
Gandhar Oil shares further jumped to ₹344 levels within minutes after hitting the secondary market, commanding a stellar premium of 103% over the issue price.
The ₹500.69 crore Gandhar Oil IPO, which was open between November 22 and November 24, was overall subscribed 64 times.
Yadav said at CMP of ₹304, Gandhar Oil shares were trading at a P/E multiple of 16.9x. Considering the growth outlook and profitability margins, he believes currently the stock is fairly valued, thus advising investors to book profit.
Read here: Multibagger IPO: Gandhar Oil share price lists at bumper premium. Should you book profit?
“Fresh buying is not recommended at this level,” he said.
Nyati of Swastika Investmart believes the strong response from investors could be due to a number of factors, including the company's strong track record of growth and profitability, its diversified customer portfolio, and its strong distribution network.
“Overall, the listing of Gandhar Oil Refinery India Limited was a success. The company's strong fundamentals, robust demand for the IPO, and strong listing price suggest that the company is well-positioned for growth in the future. However investors may consider to book profit in it once,” Nyati said.
Lastly, Fedbank Financial Services shares saw a weak listing as the stock made a debut at a discount of 1.42% to the issue price. Fedfina shares began trading at ₹138 apiece as against the issue price of ₹140 per share.
However, Fedbank Financial Services shares recovered and were trading over 5% higher at around ₹145.25 on the NSE.
The company is a subsidiary of Federal Bank. The Fedbank Financial Services IPO was subscribed 2.24 times.
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 decisions.
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