Investors essentially care about the firm brand and group when they are asked why TATA was able to successfully complete its initial public offering (IPO) given that the company is in the technology sector and that this is happening over two decades after Tata entered the industry.

Tata is a symbol of credibility and stability. The majority of investors made sure to apply for this IPO on the first day since they are regular participants in Indian initial public offerings. The only reason they are investing is that it is a Tata enterprise. For them, this is crucial.

A wide range of investors have made wagers on Tata Technologies’ Rs 3,043 crore initial public offering. In this IPO, international portfolio investors have risked a total of Rs 40,000 crore, while bids totaling Rs 1.56 lakh crore were received. Additionally, 73 lakh applications were received, breaking the previous record of 61 lakh applications received by LIC.

As previously mentioned, the truth for a lot of investors is that listing a Tata group firm is a chance that shouldn’t be passed up. The pricing, which is competitive with other businesses in this industry, is the second justification. Analysts stated that when compared to similar firms, its pricing is appealing. When we contrast Tata Tech’s value with that of KPIT Tech, Tata Elxsi , and LTT Tech Services, it appears to be well priced. Thinking ahead, this is significant.

This stock’s significant premium on the gray market is another factor driving investors’ frenzy towards initial public offerings. Although the gray market estimates that the share would be listed for Rs 900, meaning an expected profit of 80%, Tata Tech has set the IPO price range at Rs 500 per share. Since each applicant is only permitted to submit one application, many people used their friends’ and family’s demat accounts to apply in an attempt to boost their chances of being allocated.

Those who are not employees of Tata Tech or shareholders of Tata Motors may choose to apply under the small HNI category (Rs 2.10 lakh to Rs 9.90 lakh) or the retail category (Rs 15,000 to Rs 1,95,000). In the retail category, one in every eight candidates may be allocated, while in the S-HNI category, one in every 38 applicants may be. Only the fortunate few will receive the allocation in such a case.

The business offers original equipment manufacturers digital solutions and product development. It belongs to the engineering research and development (ER&D) sector, which by FY30, according to NASSCOM forecasts, would account for 22% of the worldwide market for ER&D sourcing from India.

By FY30, the software, automotive, and semiconductor industries might account for over 60% of India’s share of ER&D sourcing.

Among Tata Tech’s top five clients are JLR and Tata Motors. VinFast, an EV OEM from Southeast Asia, is one of its top five clients. According to analysts, Tata Motors has committed to investing $1.8 billion in the electric vehicle (EV) market between 2022 and 2027, which will help Tata Tech.

Analysts anticipate that the corporation will gain from the shift to electric vehicles as well as developments in the autonomous vehicle industry.