On November 30, Tata Technologies, Gandhar Oil Refinery India, and Fedbank Financial Services all made their stock market debuts, each with significant premiums. While Tata Technologies shares more than doubled investors' money when they were listed, Gandhar Oil shares were also listed at a 76.33% premium. Fedbank Financial Services shares gained traction and traded higher after a sluggish start.
Tata Technologies, a subsidiary of Tata Motors, was the outlier. Tata Technologies shares are listed on the NSE at $1,200 per share, a 140% premium on the issue price of $500 per share. This was the best Indian stock market listing since November 2021. Following this successful stock market debut, Tata Technologies shares continued to rise and reached a high of 1,400 on both markets, more than doubling investors' wealth.
Tata Technologies' IPO of 3,042.51 crore was the Tata Group's first IPO listing in nearly two decades. The IPO had a great reaction from investors, and it was subscribed 69.43 times. Analysts are positive on the stock because of its solid fundamentals, growth prospects, and affiliation with the Tata Group.
"This strong investor interest reflects the company's strong fundamentals and promising growth prospects, as well as the Tata group's legacy." Tata Technologies' IPO is a significant milestone for the company and the technical services sector. "Investors who participated in the IPO should consider holding their shares for the long term because the company is well-positioned for sustained growth," said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd. Rajnath Yadav, Research Analyst at Choice Broking, concurs that Tata Technologies is a long-term investment.
"At the current market price of $1,337, the stock is trading at a P/E multiple of 75.6x, which appears to be in line with the peers." As a result, short-term investors should take profits, while long-term investors should remain invested," Yadav said. Long-term investors should consider investing at this level, according to him.
Meanwhile, Gandhar Oil Refinery India made a successful start on the bourses today, with the stock trading at $298 per share, a 76.33% premium to the issue price of $169. Gandhar Oil shares surged to 344 levels within minutes of hitting the secondary market, commanding a whopping 103% premium over the issue price.
The 500.69 crore Gandhar Oil IPO, which was open from November 22 to November 24, was subscribed to 64 times in total. Gandhar Oil shares were trading at a P/E multiple of 16.9x at the CMP of 304, according to Yadav. He feels the company is currently appropriately valued, given the growth potential and profit margins, and advises investors to book profits.
"Fresh buying is not recommended at this level," he told reporters.
The positive response from investors, according to Swastika Investmart's Nyati, may be attributed to a number of factors, including the company's outstanding track record of growth and profitability, its diverse customer base, and its strong distribution network.
"Overall, Gandhar Oil Refinery India Limited's listing was a success." The company's solid fundamentals, significant IPO demand, and high listing price indicate that it is well-positioned for future growth. "However, investors may think about booking a profit in it once," Nyati remarked.
Finally, Fedbank Financial Services had a disappointing listing, with the stock debuting at a 1.42% discount to the issue price. Fedfina shares began trading at 138 pence per share, down from the issue price of 140 pence. Fedbank Financial Services shares, on the other hand, rallied and were trading more than 5% higher on the NSE at approximately 145.25. Federal Bank is a subsidiary of the firm. The IPO of Fedbank Financial Services was subscribed 2.24 times.
