According to Yahoo News, India's bustling initial public offering (IPO) market is set to receive a boost as Tata Technologies Ltd., the first company from the diverse conglomerate to list since 2004, begins trading in Mumbai on Thursday. Tata Technologies' IPO raised INR 30.4 billion ($365 million), with shares being sold at INR 500 each, the top of the marketed range. Demand exceeded shares on offer by 69 times, as investors flocked to the engineering unit of luxury carmaker Jaguar Land Rover's owner, Tata Motors Ltd.
The sale comes amid a record number of listings in 2023, driven by a booming stock market and optimism about India's economic growth. Last week, the frenzy reached a peak when first-time share sales from five issuers, including Tata Technologies, garnered a combined INR 2.5 trillion in application amount. Jahnavi Prabhakar, an economist at Bank of Baroda, noted that strong optimism in the domestic market has fueled the surge in IPO listings in the last two years.
Tata Technologies provides engineering research and development services, product development, and digital solutions to global OEMs and their key suppliers. The company aims to expand into aerospace, transportation, and electric vehicles. Its automotive business accounts for about 70% of sales, with Tata Motors and JLR among key clients and Vietnam's Vinfast emerging as a major customer.