Tata Tech makes bumper stock market debut

NEW DELHI: Shares of Tata Technologies, an arm of Tata Motors, made a dream stock market debut on Thursday and ended with a huge premium of nearly 163 per cent, against the issue price of Rs 500.

The stock of the company, which provides engineering and product development digital services, was listed at Rs 1,199.95, registering a sharp jump of 139.99 per cent from the issue price on the BSE. During the day, it zoomed 180 per cent to Rs 1,400. Shares of the company ended at Rs 1,314.25 apiece, rallying 162.85 per cent. On the NSE, it began the trade at Rs 1,200, climbing 140 per cent. The stock jumped to Rs 1,400 during the day. Shares of the firm ended at Rs 1,313 per piece, a jump of 162.6 per cent.

The company’s market valuation stood at Rs 53,314.99 crore. The Rs 3,042.5 crore initial public offer of Tata Technologies was subscribed 69.43 times on the final day of subscription on Friday, driven by remarkable participation from institutional buyers.

This was the first company from the Tata Group to float an Initial Public Offer (IPO) in nearly two decades. Tata Consultancy Services was the last IPO from the group in 2004. The IPO of Tata Technologies was fully subscribed within minutes of opening for bidding on Wednesday last week.

“As expected, a bumper listing above our expectation respecting the legacy of the Tata brand. After witnessing a remarkable subscription demand Tata Technologies garnered significant attention in the stock market,’’ Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said. The public issue had a price band of Rs 475-500 per share.

Tata Technologies’ public issue was entirely an Offer For Sale (OFS) of 6.08 crore equity shares.

In the equity market, the 30-share BSE Sensex climbed 86.53 points to settle at 66,988.44 while the Nifty went up by 36.55 points to 20,133.15.