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Tata Technologies Achieves Remarkable 163% Listing Gain, Marking Highest in Two Years

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.

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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.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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