Shares of India’s Tata Technologies Shares settled nearly three-fold higher on their trading debut on Thursday, valuing the first Tata Group company to go public in nearly two decades at 532.64 billion rupees ($6.4 billion).
Tata Technologies Shares Analysis
The Tata Motors’ unit, which provides engineering and technology services to auto, aero and heavy machinery makers, beat the valuation of its peers like KPIT Technologies and L&T Technology Services. Tata Technologies Shares listing-day gains were also among the best since 2021-end, according to LSEG data and analysts.
The Tata Technologies Share Price surged past the initial public offer price of 500 rupees to debut at 1,200 rupees before hitting the day’s high of 1,400 rupees and ending 163% higher at 1,313 rupees.
“The listing was beyond imagination… and post that, the rally to 1,400 rupees was even more unexpected,” Arun Kejriwal, founder of Kejriwal Research and Investment Services, said, adding that short-term investors could book profits.
Tata Technologies Stock Price
The company’s future earnings through a part of financial year ending March 2025 appear to have been discounted at the current valuation, Kejriwal added.
Tata Technologies Stock Price‘ valuation has topped that of its peers KPIT Technologies, L&T Technology Services and sister Tata Group company Tata Elxsi, Tata Technologies Share which are valued between 409 billion rupees and 514 billion rupees.
Tata IT Consultancy Services
IT services provider Tata Consultancy Services, which listed in 2004, was the last Tata Group company to go public.
India has seen a record 201 IPOs so far this year, while share benchmarks have scaled record highs on improving economic growth prospects.
Shares of the other stock market debutantes on Thursday, Tata Technologies Share Fedbank Financial Services and Gandhar Oil Refinery, closed 0.2% and 78.3% higher, respectively.
Pharmaceutical company Sigachi Industries and Paras Defence & Space had climbed as high as 270% and 171%, respectively, on listing in 2021, Aditya Kondawar, Vice President of Complete Circle Capital, said.
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