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India’s Tata Technologies valued at $6.4 bln after smashing debut

A Tata sign is seen outside their offices in London, Britain March 30, 2016. REUTERS/Toby Melville/File Photo
A Tata sign is seen outside their offices in London, Britain March 30, 2016. REUTERS/Toby Melville/File Photo

Tata Technologies (TATE.NS), the first firm in the Tata Group to go public in almost twenty years, was valued at 532.64 billion rupees ($6.4 billion) as its shares finished nearly thrice higher on Thursday, marking the company’s debut on the trading market.

In comparison to its competitors, such as KPIT Technologies (KPIE.NS) and L&T Technology Services (LTEH.NS), the Tata Motors (TAMO.NS) unit, which specializes in providing engineering and technology services to manufacturers of automobiles, aircraft, and heavy machinery, achieved a higher valuation.

According to statistics and experts from LSEG, Tata Technologies’s gains on the day of its offering were among the greatest since the end of 2021.

As the shares began trading at 1,200 rupees, they quickly surpassed the initial public offering price of 500 rupees. They then reached the highest point of the day, which was 1,400 rupees, and they finished the day at 1,313 rupees, which is a 163% increase.

“The listing was beyond imagination… and after that, the rally to 1,400 rupees was even more unexpected,” said Arun Kejriwal, the founder of Kejriwal Research and Investment Services. He also mentioned that short-term investors might book gains from the move.

Kejriwal said that the company’s future profits through a portion of the fiscal year that will finish in March 2025 have been discounted at the current price and that this discount has occurred.

The valuation of Tata Technologies has surpassed that of its competitors, KPIT Technologies, L&T Technology Services, and Tata Elxsi (TTEX.NS), valued between 409 billion and 514 billion rupees. Tata Technologies’ worth is the highest among its competitors.

It was the final firm in the Tata Group to go public, and it was the information technology services provider Tata Consultancy Services (TCS.NS), which went public in 2004.

This year, an unprecedented 201 initial public offerings (IPOs) have been made in India. At the same time, share benchmarks have reached all-time highs due to strengthening economic growth forecasts.

Fedbank Financial Services (FEDB.NS) and Gandhar Oil Refinery (GADH.NS) were the other companies that debuted on the stock market on Thursday. Their share prices decreased the day by 0.2% and 78.3%, respectively.

According to Aditya Kondawar, Vice President of Complete Circle Capital, pharmaceutical companies Sigachi Industries (SIGC.NS) and Paras Defence & Space (PRAF.NS) had experienced share price increases of up to 270% and 171%, respectively, after their initial public offerings in 2021.

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