Tata Tech Shares Surge 140% at Rs 1200, Gandhar Oil Sees 76% Profit Growth
On Thursday, Tata Technologies and Gandhar Oil’s shares were listed on the stock exchange. Tata Tech’s IPO, issued at Rs. 500, saw a 140% increase, listing at Rs. 1200, while Gandhar Oil’s IPO, issued at Rs. 169, increased by 76%, listing at Rs. 298. Tata’s IPO was subscribed 70 times, and Gandhar’s 64 times.
Tata Tech: Rs. 3042 Crore IPO, Receives Bids of Rs. 1.56 Lakh Crore
Tata Tech’s IPO, with a value of Rs. 3042 crore, received bids exceeding Rs. 1.56 lakh crore when it opened on November 22. Tata Tech, an automotive giant and a part of the Tata Group, went public after nearly 19 years, with the last IPO being Tata Consultancy Services (TCS) in 2004.
Tata Technologies Founded in 1994
Established in 1994, Tata Technologies is a global engineering services company. It specializes in product development, supply chain solutions, and provides digital transformation services. The company is a major player in the automotive industry and has invested significantly in automotive ER&D, ranking among the top 10 globally.
Company Earns Revenue Through Two Business Segments
- Services: Tata Technologies offers outsourced engineering services and digital transformation services to global manufacturing clients, contributing to a revenue of Rs. 3,531 crore in the financial year 23. In H1 FY24, it earned revenue of Rs. 1,986 crore.
- Technology Solutions: The company sells software applications, including product lifecycle management software, and provides value-added services such as consulting, implementation, system integration, and support.
Gandhar Oil: Rs. 500 Crore IPO, Gets Bids of Rs. 23,000 Crore
Gandhar Oil’s IPO opened from November 22 to 24 and received bids amounting to Rs. 23,000 crore. The IPO price band ranged from ₹160 to ₹169, and the company raised Rs. 500.69 crore. Gandhar Oil, known for producing white oil, is used in consumer and healthcare industries.
Reasons for Increased IPO Interest
Three reasons contributing to the surge in IPO interest:
- Growing Stock Market Interest: Increased interest in the stock market is evidenced by the Central Depository Services Limited (CDSL) recording 10 crore demat accounts in November 2023.
- Positive Market Conditions: The year 2023 has seen a positive trend in IPOs, with 43 mainboard IPOs. Companies like SBI Cards and Utkarsh Small Finance Bank have seen a 50% increase in listings.
- Simultaneous IPO Openings: Six IPOs opened within a week, with investors showing enthusiasm and subscribing to most IPOs. There is an expectation of substantial gains on listing, with Tata expected to have an 80% return.
What is an IPO?
When a company publicly offers its shares to the market for the first time, it is termed an Initial Public Offering (IPO). Companies resort to IPOs when they need funds for business expansion, and they sell a portion of their ownership in the form of shares in the stock market.
