Analysts upbeat on Tata Tech IPO; GMP signals robust demand

Tata Technologies IPO: In the grey market, the stock is commanding a premium of up to Rs 350 or 70 per cent over the upper price band of Rs 500

The strong headroom for growth in manufacturing-led engineering services and an attractive valuation have kept analysts optimistic about the initial public offering (IPO) of Tata Technologies (Tata Tech).

Siddhesh Mehta, research analyst at Samco Securities, suggests subscribing to the engineering research and development (E&RD) services company’s IPO for the long term, as it is “reasonably priced with strong long-term growth prospects”. At the upper price band of Rs 500, the issue is valued at a price-to-earnings (P/E) multiple of 32.5 times 2022-23 (FY23) earnings.
 

This is a steep discount of 69 per cent and 53 per cent compared to peers