Tata Technologies, a subsidiary of Tata Motors (TML), made an impressive market debut on Thursday, November 30, listing at a 140% premium to the issue price of ₹500. The stock opened at ₹1,200 on the NSE and ₹1199.95 on the BSE.
The ₹3,042.51 crore issue of Tata Technologies is also the best listing since November 2021 for an IPO size of greater than ₹500 crore. The last IPO from the Tata Group was Tata Consultancy Services (TCS)in 2004.
With its market listing, Tata Technologies beat the valuation of its peers like KPIT Technologies (KPIE.NS), L&T Technology Services (LTEH.NS) and sister Tata Group company Tata Elxsi.
Tata Technologies is a pure-play manufacturing-focused engineering research and development (ER&D) company, primarily focused on the automotive industry.
Its revenue CAGR over the last three years has far exceeded that of Tata Elxsi, L&T Technologies, and KPIT Technologies. Its EBITDA margin, at 23.7 ℅ remains more or less equal to industry standards. With a P/E ratio of 18.2x, the Tata Technologies IPO was priced fairly, said analysts.
Advertisements