In a groundbreaking automotive news, the stock price of Indian company Tata Motors surged 180% during its first day of trading on November 30th, reaching a market value of 567.94 billion rupees.
Image source: Tata Technologies Tata Technologies is a subsidiary of Tata Motors, providing engineering and technical services, product development, and digital solutions to automotive, aerospace, and heavy machinery manufacturers. About 70% of the company’s sales come from its core automotive business, with major automotive clients including Tata Motors, Jaguar Land Rover, and Vietnam’s Vinfast. On its first day of trading, Tata Technologies’ stock price soared from the initial price of 500 rupees to 1200 rupees, peaking at 1400 rupees. Investors subscribed to Tata Technologies’ IPO more than 69.43 times, making it the most subscribed IPO among a series of IPOs last week. According to data from the London Stock Exchange, if its stock price increase remains unchanged, Tata Technologies is poised to become the top gainer among Indian listed companies this year, with its first-day increase also ranking among the highest in the country. According to Aditya Kondawar, Vice President of Complete Circle Capital, pharmaceutical company Sigachi Industries and Paras Defense & Space saw their stock prices rise by 270% and 171%, respectively, on their first day of trading in 2021. According to LSEG data, financial services company Religare Enterprises saw a 214% increase on its first day of trading in 2007. “Tata Technologies’ first day of trading was beyond imagination… its stock price soared to 1400 rupees, which was unexpected,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services, suggesting short-term investors could profit from it. Kejriwal added that some of the future earnings of the company seem to have already been discounted at the current valuation by the end of the 2025 fiscal year. Tata Technologies’ current valuation has surpassed that of its peers KPIT Technologies, L&T Technology Services, and Tata Elxsi, a subsidiary of Tata Group, with valuations ranging from 409 billion rupees to 524 billion rupees. India has seen a record 196 IPOs so far this year, as the country’s stock market benchmark points continue to reach new highs due to improved economic growth prospects and a large consumer base.