Investors can now participate in the pre-apply mode for the highly anticipated Tata Technologies IPO, a move that allows advance applications before the official bidding commencement. Scheduled to open for subscription on November 22 and close on November 24, this IPO marks Tata Group’s first initial public offering in two decades.
In the grey market, Tata Technologies shares are already trading at a notable 70% premium, ranging between ₹475 to ₹500 per equity share, surpassing the issue price of ₹340 to ₹345 per share.
Despite subdued market sentiments on Dalal Street, financial analysts highlight the remarkable increase in Tata Technologies IPO Grey Market Premium (GMP). Within a span of two days, GMP surged from around ₹240 to ₹375, indicating strong investor interest leading up to the IPO’s opening on November 22, 2023.
However, analysts caution against giving undue weight to Grey Market Premium (GMP), emphasizing its lack of regulation and speculative nature. They stress that GMP doesn’t necessarily reflect the company’s financials and may be artificially inflated, especially when influential IPO stakeholders are involved. Investors are advised to conduct thorough assessments of the company’s balance sheet before making investment decisions in the primary market.
Atul Parakh, CEO at Bigul, shared insights on the Tata Technologies IPO, stating, “TATA Technologies will be the IPO to look upon in the next week, which everyone has been waiting for.” Parakh highlighted the IPO’s face value of ₹2, its favorable valuation compared to peers like KPITTECH and TATAELXI, and the solid backing from the TATA group. He also mentioned potential heavy listing gains as a significant factor driving retail interest in the stock.
A Bonanza portfolio expert noted that Tata Technologies IPO is attractively valued compared to peers such as Tata Elxsi, KPIT Technologies, L&T Technology Services, among others.
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