Tata Technologies Ltd shares fell approximately 8% in the early trading session on Friday as speculators sought to profit from the Tata Group's latest debutant on Dalal Street. During the second trading session, the stock plummeted rapidly and approached its listing price.
Tata Tech shares fell 8% to Rs 1,212.80 on Friday, after closing at Rs 1,3,14.25 on Thursday, its first trading day. The whole market capitalization has fallen below Rs 50,000 crore. They did, however, make a slight recovery and recaptured the Rs 50,000 crore m-cap level.
Tata Technologies made its Dalal Street debut on Thursday, when it was listed at Rs 1,200 per share, a 140% premium over its issue price of Rs 500. The stock gained another 17% to Rs 1,400, bringing the total gain to 180% over the issue price.
Tata Technologies shares more than doubled in their trading debut, putting the business on track to produce the highest listing returns for any Indian IPO of comparable size in history, according to Amit Goel, Co-Founder & Chief Global Strategist at Pace 360.
Tata Tech appears to be valued similarly to its peers. We believe that these prices are unsustainable, and we would advise taking profits on the counter in the coming weeks. Long-term investors, he believes, may have better entry chances in the next 5-6 months, when this stock may be available at lower levels.
Tata Technologies was the famed Tata Group's first initial public offering (IPO) in nearly two decades. In 2004, the domestic conglomerate made the initial public offering of India's largest software exporter, Tata Consultancy Services.
Tata Technologies' initial public offering (IPO) was priced at Rs 475-500 a share, with a lot size of 30 shares. The issue, which was fully an offer for sale by the promoter and other selling shareholders of the company, was open for bidding between 22 and 24 November to raise a total of Rs 3,042.51 crore.
The offer attracted 73,58,222 bids worth more than Rs 1 lakh crore, garnering an overall subscription of 69.43 times, mainly to aggressive bidding by qualified institutional bidders (QIBs), whose portion was subscribed a phenomenal 203.41 times.
