The stock ended the listing at ₹1,327 on the NSE, a 165.4 percent premium to the IPO price of ₹500, and at ₹1,326.25 on the BSE, a 165.25 percent premium.
The stock jumped as much as 180 percent to ₹1,400 in intraday deals. Tata Technologies’ initial public offering was fully subscribed within 36 minutes on the first day of opening, witnessing robust demand for the Tata Group’s first public issue since 2004.
The Tata Tech list was the best list of 2023 and also the best since November 2021.
However, overall so far, some stocks have performed better than these Tata Group stocks in listing earnings. Let’s take a look at the best listings in the Indian stock market.
FCS Software Solutions: FCS Software Solutions delivered the highest listing gains ever, debuting at a premium of 200 percent in the year 2005 at ₹150 against an IPO price of ₹50.
FCS Software Solutions Limited provides software development and marketing, and support services to corporate business units in the BPO, software development, e-learning, and other related information technology (IT) enabled services in India and the United States.
Paras Defense: It was the second biggest debut, charting at ₹475, a 171 percent premium to the issue price of ₹175. The stock listed on October 1, 2021. To date, it has soared 300 percent from its IPO price.
Paras Defense has a niche product profile and technology and is one of the leading “Indigenously Designed Developed and Manufactured” category private sector companies in India. Hence, experts believe that the company is expected to benefit from the government’s ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives.
Salasar Techno Engineering: It listed at a premium of 152 percent at ₹272.10 against the IPO price of ₹108 on the Indian stock market on July 25, 2017.
Salasar Techno Engineering Limited manufactures and sells galvanized and non-galvanized steel structures in India and internationally. It operates in two segments, Steel Structure, and Engineering Procurement & Construction. It was incorporated in 2001 and is based in Ghaziabad, India.
Indraprastha Gas: It debuted at ₹120, 150 percent premium to the issue price of ₹48. It was listed on December 26, 2003, and has grown more than 713 percent from its IPO price to date.
Indraprastha Gas Limited is engaged in the distribution of natural gas in India. The company supplies compressed natural gas (CNG) to the transport sector; and piped natural gas to domestic, commercial and industrial sectors. It operates CNG stations, as well as steel pipeline and MDPE networks. It was incorporated in 1998 and is headquartered in New Delhi, India.
Astron Paper and Board Mills: Shares of Astron Paper and Board Mills saw a bumper listing in December 2017 as the stock debuted at a premium of 141 percent at ₹120.50.
Astron Paper & Board Mill Limited manufactures and sells a range of kraft papers from waste paper for the packaging industry in India. The company offers high-ring crust test papers, kraft liners, test liners, and corrugated medium papers. It also exports its products. The company was incorporated in 2010 and is headquartered in Ahmedabad, India.
Going forward experts see the IPO trend continuing. “IPOs, their quantum, and their success is a function of how markets do. So, in the absolute near term, the trend should continue,” said Manish Jain, Fund Manager, Coffee Can PMS, Ambit Asset Management.
However, one must look at the sustainability, moat, valuation and quality of advertisers. It’s always about quality, not swaying from the flow, Jain warned.
Meanwhile, Jitesh Agarwal, Founder of Treelife, also warned that overvaluation in IPOs is definitely a concern as it can lead to unrealistic expectations and subsequent market corrections that could erode the wealth of investors, especially retail investors. Investors should be careful and do thorough research to understand the true value of the company against its market price.
Many investors end up subscribing to IPOs based on the brand value, however, it is necessary to evaluate the following factors before investing in a company – the current financial health of the company, industry prospects, market competition, credibility of the management team and offer price relative. to the valuation of the company, he advised investors.
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Updated: 30 Nov 2023, 15:53 IST