Tata Technologies IPO Lists at 140%; surges further by 10.56%

Tata Technologies IPO has a premium listing plus a surge after that

Tata Technologies IPO had a very robust listing on 30th November 2023, listing at a smart premium of 140% on the NSE and on top of that managed to gain another 10.56% over the listing price. The stock of Tata Technologies Ltd closed the day at ₹1,326.70 per share, a premium of 10.56% over the listing price of ₹1,200 per share and a premium of 165.34% over the IPO price of ₹500 per share. Certainly, the IPO allottees of Tata Technologies Ltd would be laughing all the way to the bank at the close of the first day of listing of the stock. The pattern was exactly similar on the BSE also. On the Bombay Stock Exchange (BSE), the stock of Tata Technologies Ltd opened at ₹1199.95 per share, a premium of 139.99% over the IPO issue price of ₹500 per share. For the day, the stock closed on the BSE at ₹1314.25, an overall gain of 9.53% over the IPO listing price of ₹1,199.95 per share and a premium of 162.85% over the issue price of ₹500 per share.  On the NSE and the BSE, the stock of Tata Technologies Ltd closed the listing day sharply higher than the listing price, but stayed well below the 20% upper circuit that is the maximum permissible for the day.

While the closing price of Tata Technologies IPO on 30th November 2023 was substantially above the IPO issue price on both the stock exchanges, it also closed comfortably above the listing price on the BSE and also on the NSE. For the day, the Nifty closed 37 points higher while the Sensex closed a full 87 points higher as the Nifty closed above the psychological 20,100 mark on hopes that the growth momentum will sustain in India. Both the Nifty and the Sensex showed moderate gains on Thursday, gaining around 13 to 15 basis points in a single day of trade. That also assisted the stock price performance of Tata Technologies Ltd, partially, if not entirely.

Tata Technologies IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 69.43X  overall and QIB subscription was at 203.41X. In addition, the retail portion had got subscribed 16.50X in the IPO while the HNI / NII portion also got a healthy subscription of 62.11X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock closed around 10% higher over the listing price of the day on both the stock exchanges, despite the overall market a good deal of volatility during the day.

The IPO price was fixed at the upper end of the band at ₹500 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹475 to ₹500 per share. On 30th November 2023, the stock of Tata Technologies Ltd listed on the NSE at a price of ₹1,200 per share, a strong premium of 140% over the IPO issue price of ₹500 per share. On the BSE also, the stock listed at ₹1,199.95, a premium of 139.99% over the IPO issue price of ₹500 per share. Here is the Tata Technologies Ltd listing story on 30th November 2023.

How the stock of Tata Technologies IPO closed on both exchanges?

On the NSE, Tata Technologies IPO closed on 30th November 2023 at a price of ₹1,326.70 per share. That is a first day closing premium of 165.34% on the issue price of ₹500 and also a premium of 10.56% on the listing price of ₹1,200 per share. In fact, the listing price turned out to be exactly the low price of the day on the NSE and the stock traded for the entire trading day above the opening listing price. On the BSE also, the stock closed at ₹1,314.25 per share. That represents a first day closing premium of 162.85% above the IPO issue price of ₹500 per share and also a premium of 9.53% above the listing price on the BSE at ₹1,199.95 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, never going below the listing price, but still eventually closing well under the upper circuit of the day. In fact, the opening price turned out to be the low price of the day on the BSE as well as on the NSE. The high price of the day on both the stock exchanges on 30th November 2023 was approximately 10% above the listing price, but stayed well below the upper circuit of 20% as permitted by the stock exchange on the day of listing. In fact, on the NSE, the stock closed with open buying quantity of 1,19,119 shares, showing a lot of pent up demand for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Tata Technologies IPO on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock of Tata Technologies traversed on the National Stock Exchange (NSE) on 30th November 2023. On Day-1 of listing, Tata Technologies Ltd touched a high of ₹1,400 per share on the NSE and a low of ₹1,200 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was exactly the IPO opening price, the stock of Tata Technologies Ltd did close well below the high price of the day. In fact, at one point, the stock had almost gotten very close to the upper circuit price before retreating from higher levels. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Tata Technologies Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the NSE, the upper circuit price was ₹1,440 per share while the lower circuit price was ₹960 per share. During the day, the high price of the day at ₹1,400 was very close to the upper band price while the low price of the day at ₹1,200 per share was well above the lower band price for the day at ₹960 per share. On Day-1 of listing, the Tata Technologies Ltd stock traded a total of 465.79 lakh shares on NSE amounting to value of ₹6,114.06 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending buy orders of 1,19,119 shares on the NSE. However, the sharp fall from the highs show there was profit booking visible during the day.

Price volume story of Tata Technologies IPO on the BSE

Let us look at how the stock of Tata Technologies traversed on the Bombay Stock Exchange (BSE) on 30th November 2023. On Day-1 of listing, Tata Technologies Ltd touched a high of ₹1,400 per share on the BSE and a low of ₹1,199.95 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was exactly the IPO opening price, the stock of Tata Technologies Ltd did close well below the high price of the day. In fact, at one point, the stock had almost gotten very close to the upper circuit price before retreating from higher levels. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Tata Technologies Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the BSE, the upper circuit price was ₹1,439.90 per share while the lower circuit price was ₹960 per share. During the day, the high price of the day at ₹1,400 was very close to the upper band price while the low price of the day at ₹1,199.95 per share was well above the lower band price for the day at ₹960 per share. On Day-1 of listing, the Tata Technologies Ltd stock traded a total of 28.48 lakh shares on NSE amounting to value of ₹375.37 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending buy orders on the BSE. However, the sharp fall from the highs show there was profit booking visible during the day.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with very little hint of any profit booking even by the close of the trading session. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 465.79 lakh shares traded during the first day of trading, the deliverable quantity represented 215.82 lakh shares or a deliverable percentage of 46.33% on the NSE, which is definitely lower than the routine listing day median and hints at a lot of speculative trading on the counter.

How was the delivery and speculative action on the BSE? Even on the BSE, out of the total 28.48 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 12.93 lakh shares representing total deliverable percentage of 45.39%, which is slightly lower than the NSE, but substantially lower than the typical listing day median. On the BSE also, there was a lot of speculative trading volumes visible in the counter. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing also.

At the close of Day-1 of listing, Tata Technologies Ltd had a market capitalization of ₹53,315 crore with free-float market cap of ₹6,398 crore. Tata Technologies Ltd has issued capital of 40.57 crore shares with a par value of ₹2 per share.