Tata Technologies IPO, which is one of the most anticipated public offerings of the season, is now open for subscription under the pre-application mode. Pre-application mode for an IPO means that you can apply for the offer in advance before it actually goes live for offer on the opening day.
The IPO, which will open for subscription on November 22, Wednesday and close on November 24, will be marked as Tata Group’s first initial public offering in 20 years.
Tata Technologies shares are already trading at a 70% premium in the gray market at ₹475 – ₹500 per equity share, against the issue price of ₹340 – ₹345 per piece.
Analysts noted the commendable rise in Tata Technologies IPO Gray Market Premium (GMP) despite the weak sentiments prevailing on Dalal Street. Over the course of two days, the Tata Technologies IPO GMP increased from approx ₹240 to ₹375, indicating a robust investor response, as the public issue opens on November 22, 2023.
However, according to financial analysts, Gray Market Premium (GMP) should not be given significant weightage as it lacks regulation and is entirely speculative. They emphasized that the gray market premium does not have any correlation with the company’s finances.
Additionally, they pointed out that sometimes, the GMP can be artificially inflated, especially when individuals with significant interests in the upcoming IPO are involved. As a precaution, investors were advised to thoroughly examine the company’s balance sheet before making any investment decisions in the primary market.
Sepaking on Tata Technologies IPO, Atul Parakh, CEO at Bigul said, “TATA Technologies will be the IPO to watch in the coming week which everyone has been waiting for. The IPO comes with a face value of ₹2 with good rating comfort over its peers in the names of KPITTECH and TATAELXI. The company is also backed by TATA, with solid finances and prospects. Investor interest also points to likely heavy listing gains, which is also a major factor in retail interest in the stock.”
Bonanza expert said Tata Technologies IPO was launched at an attractive valuation against its peers like Tata Elxsi, KPIT TechnologiesL&T Technology Services, etc.
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Updated: 20 Nov 2023, 17:37 IST
