Tata Technologies Ltd made a spectacular debut on the stock market, securing the highest listing gains in two years for an offer exceeding ₹500 crore. The stock surged by an impressive 162.85% from its issue price of ₹500 to close at ₹1,314.25 on Thursday. This performance stands as the most substantial listing gain since digital analytics firm Latent View Analytics Ltd recorded a 169% premium on November 23, 2021.
Gandhar Oil Refinery (India) Ltd also experienced a notable listing gain of 78.4%, while Indian Renewable Energy Development Agency Ltd (Ireda), a renewable energy financier, continued to witness strong gains for the second consecutive day since its listing. On the other hand, Fedbank Financial Services Ltd (Fedfina) had a modest debut, closing near its issue price.
Tata Technologies, the first Tata group company to list in nearly two decades, opened with a 140% gain at ₹1,199.95 before further ascending, indicating robust demand despite a rich valuation of 85 times trailing price-to-earnings multiple compared to 32.53 times before listing. It ranked as the second-most traded stock on the National Stock Exchange of India (NSE), with a trading volume of ₹6,114.07 crore.
Despite the elevated valuations, investors eagerly embraced the stock in the secondary market, with delivery volumes at 46% on NSE and 45% on BSE.
Ambareesh Baliga, an independent market analyst, described the situation as “madness,” highlighting the strong investor appetite for stocks like Tata Technologies, Gandhar, and Ireda, despite their non-economical pricing. He emphasized the momentum and liquidity-driven nature of the current market.
While acknowledging the rich valuation, a mutual fund official and anchor investor to the issue noted that Tata Technologies was a highly desired stock in the market due to its pedigree and business nature.
Anchor investors, who received full allotment, including US-based private equity fund TPG, are enjoying substantial gains. TPG, which acquired a 9% stake at a discount, saw its holding reach a significant ₹4,798 crore at Thursday’s closing.
Gandhar Oil Refinery closed at a 78.4% premium, and Ireda, which debuted on November 29, surged almost 9% on Thursday. Net purchases by foreign portfolio investors reached a provisional ₹8,148 crore, contributing to NSE’s record turnover of ₹1.68 trillion.
This notable market activity followed the MSCI index rebalancing, attracting passive inflows of up to $1.5 billion. The NSE’s benchmark Nifty index closed 0.18% higher at 20,133 points.
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