Tata Technologies share price slumps 8% after blockbuster listing due to profit booking
- Tata Technologies share price slumps nearly 8% after a blockbuster listing, failing to sustain momentum in the bull market due to profit booking.
Tata Technologies share price, after a blockbuster listing yesterday, failed to sustain the momentum in the bull market in Friday's session on the back of profit booking. Tata Technologies share price today slumped nearly 8%. Tata Tech share price opened at ₹1,339.60 apiece on BSE. Tata Tech share price today touched intraday high of ₹1,348, and low of ₹1,212.80.
On Thursday, November 30, Tata Tech share price ended at ₹1,313 on NSE, a 162.6% premium to the IPO price of ₹500, and at ₹1,314.25 on BSE, a 162.85% premium. It listed at ₹1,200 on the NSE and BSE, a premium of 140% to the IPO price of ₹500, and hit an intra-day high of ₹1,400 (180% premium).
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Experts in the stock market claim that within an hour of the Tata Technologies share price going public on the NSE on Thursday, there were about 3.3 crore trades. They advised that while a cautious investor could wait for further gains, allottees who invested in Tata Technologies' initial public offering (IPO) can book profit and exit. However, this stock is perfect to hold in a portfolio for long-term investors.
On the other hand, other listed companies in the Tata Group, such as Tata Elxsi, have gained 34.46% in 2023 thus far, and TCS has gained 11.34% in 2023. According to technical analysts, there were no major traction in both the stocks. Yesterday, both the stocks were down, but today they are showing some strength. Overall bias is positive in the counter.
Of the ten mainboard IPOs that were listed in November, eight debuted with premiums. With a 140% gain, the Tata Technologies IPO topped the list.
Tata Tech IPO was subscribed 69.43 times on final day of bidding on November 24. The retail investors portion has been subscribed 16.50 times, NII portion is subscribed 62.11 times, and Qualified Institutional Buyers (QIB) portion is booked 203.41 times. Employee portion has been subscribed 3.70 times Portion reserved for the shareholder has been booked 29.19 times.
Tata Technologies IPO was entirely an offer for sale (OFS) of 6.09 crore equity shares by the promoter and investors. Promoter Tata Motors will offload 4.62 crore equity shares worth ₹2,313.75 crore in the OFS, while investors Alpha TC Holdings Pte Ltd will sell 97.17 lakh shares and Tata Capital Growth Fund I will offload 48.58 lakh shares in the Tata Technologies IPO.
Tata Technologies is a subsidiary of automobile major Tata Motors and is a pure-play manufacturing-focused Engineering Research & Development (ER&D) company, primarily focused on the automotive industry.
The company's listed industry peers are KPIT Technologies Ltd (with a P/E of 80.31), L&T Technology Services Ltd (with a P/E of 37.47), and Tata Elxsi Ltd (with a P/E of 61.55), as per Red Herring Prospectus (RHP).
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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