The shares of Tata Technologies made a stellar debut on the bourses — fetching a massive premium of 163 per cent to the issue price of Rs 500.

The company listed at Rs 1,199.95 on the BSE, a premium of nearly 140 per cent to the issue price. It spiked to a day’s high of Rs 1,400, a gain of 180 per cent. The scrip settled at Rs 1,314.25, rallying 162.85 per cent.

On the NSE, Tata Technologies opened with a 140 per cent premium at Rs 1,200. The stock jumped to Rs 1,400 and ended at Rs 1,313, a premium of 162.6 per cent.

Based on the closing price, the company’s market valuation stood at Rs 53,314.99 crore.

The Rs 3,042.5-crore IPO of Tata Technologies was subscribed 69.43 times on the final day of subscription on Friday, led by institutional buyers.

Shares of the company were trading at a premium of over 80 per cent on the grey market after the share sale closed for subscription as expectations grew the stock would trade at these levels in the opening session.

Tata Technologies was the first company from Tata Group to come with an IPO in nearly two decades.

Tata Consultancy Services was the last IPO from the group in 2004.

“As expected, a bumper listing above our expectations respecting the legacy of the Tata brand. After witnessing a remarkable subscription demand Tata Technologies garnered significant attention in the stock market,” Prashanth Tapse, senior VP (research) at Mehta Equities Ltd, said.

Analysts said despite the strong gains made by the scrip, investors with a long-term perspective can buy the stock at the current levels.

According to Shivani Nyati, head of wealth, Swastika Investmart, while the dream listing is a positive development for the company and the engineering services sector, investors who participated in the IPO should consider holding on to their shares for the long term as the company is well-positioned for sustained growth.

Gandhar shines

Gandhar Refinery (India) Ltd also made a strong debut as it closed at a premium of 78.40 per cent to the issue price of Rs 169. The stock opened at Rs 295.40, a rise of 74.79 per cent against the issue price on the BSE.

During intra-day trades, it shot up 103.90 per cent to touch a high of Rs 344.60. They subsequently shut shop at Rs 301.50 per share, showing an appreciation of 78.40 per cent.

On the NSE, the stock listed at Rs 298, up 76.33 per cent.

It zoomed 103.57 per cent to Rs 344.05 and ended at Rs 301.55, a gain of 78.43 per cent. The company’s market valuation stood at Rs 2,950.78 crore.

Fedbank Financial Services had a muted listing and ended at the issue price of Rs 140 on the BSE.