In a remarkable debut on the stock market, shares of Tata Technologies, the engineering and technology services arm of Tata Motors, surged by an impressive 180%, making it the first Tata Group company to go public in nearly two decades. The IPO, valued at 500 rupees, catapulted to a debut price of 1,200 rupees, reaching as high as 1,400 rupees.
Historic listing day performance
If the gains hold, Tata Technologies is set to register the most significant jump among domestic listings in 2023 and one of the highest listing-day gains ever witnessed in India, according to data from the London Stock Exchange Group (LSEG). This performance surpasses the listing day achievements of Sigachi Industries and Paras Defence & Space in 2021, which saw gains of 270% and 171%, respectively. Religare Enterprises also posted a remarkable 214% increase on its debut day in 2007.
Valuation surpasses peers
Tata Technologies’ valuation has now exceeded that of its peers in the sector, including KPIT Technologies, L&T Technology Services, and Tata Elxsi, with valuations ranging between 409 billion rupees and 524 billion rupees. This places Tata Technologies at the forefront of the industry in terms of market capitalization.
Record-breaking year for Indian IPOs
With India experiencing a record 196 IPOs in the current year, the stock market has been on an upward trajectory, buoyed by optimistic economic growth prospects and a vast consumer base. Tata Technologies’ IPO witnessed exceptional demand, with investors oversubscribing it by a staggering 69.43 times, marking one of the highest levels of demand in the recent string of IPOs.
Historical context
Tata Consultancy Services (TCS), which went public in 2004, was the last Tata Group company to make its debut on the stock market before Tata Technologies’ historic listing. The exceptional performance of Tata Technologies adds a significant chapter to the Tata Group’s legacy in the capital market.