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Tata technologies IPO, should buy, sell or hold after listing

 What investors should do in Tata technologies stock after IPO listing

Tata Technologies' IPO has received a very good response in the Indian market. After many years, Tata Group has brought its IPO in the Indian market. Let us tell you that the IPO of Tata Technologies was subscribed 69.43 times in which the bids received were as follows: 3,12,64,69,230 equity shares as against 4.50 crore shares on the offer.

Retail investors portion had been subscribed 16.50 times & If we will talk about  NII portion then it was subscribed 62.11 times, Also we have to look participation of QIB and it was subscribed 203.41 times  by  Qualified Institutional Buyers . The response of Employee portion was bit surprised and it had subscribed 3.70 times. We should also talk about reserved portion for the shareholder which had booked by 29.19 times

 view on Tata technologies share after Listing:

Let us tell you that Tata Technologies is a subsidiary of Tata Motors. As we all know that Tata Motors stock has given more than 5 multiple returns since March 2020. If we look at the balance sheet of Tata Motors, there is a lot of debt on the books but the good thing is that the company has launched new cars in the Indian market and all these cars are getting good response. If we understand the gray market premium, Tata Technologies stock is getting a premium of up to 405rs; however, we cannot completely trust the grey market premium because it can be more or less at the time of listing. But still according to the grey market, Tata Technologies stock can be listed at 81% premium price.

                                                   Image source: google images-Tata technologies website

Let’s check the financials of Tata technologies in the financial year 20-23, Tata technologies  company sales grew by nearly 16% which reached at  came at  4,414 crore in FY23 & EBIT margins had also shown improvement which raised  from 13% in FY20 to 16.5% in FY23.

Future plans of Tata technologies

Tata technologies is planning to strengthen relationships with existing as well as with the target of new clients  having good high potential accounts with large annual ER&D spends with new energy vehicle companies those will look to drive the growth.  Tata technologies had shown ROE and ROCE around 21% and 24% for FY23 & it is also a good sign.

If we carefully understand the points discussed above, then the management of Tata Technologies is focusing on the growth of the company. Along with this, investors trust Tata Group companies more. According to us, Tata Technologies stock should be held in your portfolio even after IPO listing. Tata Technologies stock can also give multibagger returns in the long term. If we talk about short term traders, then they will be advised to book profit on higher price after listing of Tata Technologies shares, but for long term investors, if Tata Technologies shares are allotted in IPO, then they will get 50% profit on IPO listing. You should book after IPO and if there is some profit booking in Tata Technologies stock then you should start accumulating because investors and traders who may not have got share allotment in IPO can buy after listing and go short. You can also book profits in the term, hence after the IPO listing, the share price of Tat Technologies should be allowed to settle and then you should think of buying. The management of Tata Technologies Company is very strong, hence according to us, multibagger returns can be achieved in the long term (2 to 3 years).

Also read: IREDA IPO buy, sell or hold after IPO Listing


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