Tata Technologies IPO boom | IPO after two decades, premium started making record in gray market

Orhan Wadia
Orhan Wadia  - Editor
3 Min Read
Credit: khabarsatta.com

After nearly two decades, a new member of the Tata group is poised to step into the stock market arena. The forthcoming Tata Technologies IPO is generating substantial interest and excitement, marking a significant development in the world of finance. Although specific details about the IPO are yet to be unveiled, the gray market is already abuzz with anticipation and speculation.

A Long-awaited Arrival – Tata Technologies IPO

The impending Tata Technologies IPO marks a notable event as it signifies the first public offering by a Tata group company in nearly 19 years. Back in 2004, Tata Consultancy Services (TCS), the IT arm of Tata Group, launched an IPO that garnered immense attention and ultimately propelled TCS to become the second-largest listed company in India, trailing only behind Reliance Industries. This historical precedence has led to heightened eagerness among investors across all categories, eagerly anticipating the advent of another Tata Group IPO.

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Expected Timeline

Tata Technologies Limited, a subsidiary of Tata Motors, has already secured approval from the market regulator, the Securities and Exchange Board of India (SEBI), for its IPO. The market now stands poised for the forthcoming IPO launch, with expectations that it could materialize at the conclusion of August or the commencement of September. With this projected timeline, the next month holds the potential for witnessing the debut of the Tata Group’s latest IPO.

Anticipated IPO Details

The Tata Technologies IPO is projected to offer approximately 405,668,530 shares. With an estimated valuation of approximately Rs 12,000 crore, speculations arise regarding the issue price of the IPO, which could hover around Rs 295 per share. Although there’s the possibility of a discounted rate, resulting in an IPO price of approximately Rs 265-270 per share, market analysts are considering alternative scenarios. Some analysts speculate that the company may opt for a tighter pricing strategy, leading to an IPO price range of Rs 315 to 320 per share.

Gray Market Dynamics

The gray market, a platform for unofficial trading ahead of IPOs, has been rife with bullish conjecture since SEBI’s approval of Tata Technologies IPO proposal. As the potential IPO launch date draws near, the gray market response intensifies. Currently, the gray market premium (GMP) for Tata Technologies IPO stands at Rs 105, an increase from Rs 89 merely a week ago.

Remarkable Enthusiasm Amidst Market Uncertainty

The robust response in the gray market is particularly noteworthy given the prevailing market conditions characterized by weakness. Despite the BSE Sensex and NSE Nifty achieving new highs in July, subsequent market downturns have contributed to an overall sentiment of uncertainty. Nonetheless, the resounding enthusiasm surrounding the impending Tata Group IPO underscores the enduring appeal and anticipation that this renowned conglomerate commands in the investment landscape.

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