Tata Technologies debut propels Tata Group’s market cap to Rs 26

Tata Technologies debut propels Tata Group’s market cap to Rs 26.20 lakh crore

The bumper debut of Tata Technologies on Dalal Street led to a surge in the conglomerate’s overall market capitalization, reaching a new high of Rs 26.20 lakh crore on Thursday. The engineering unit of Tata Motors witnessed an astounding 180% rally on its debut, marking one of the most substantial gains for a public offering of its size.

With the exception of Rallis India, all Tata Group companies have posted positive returns in 2023. Notably, Benares Hotels, Automotive Stampings & Assemblies, and Trent have more than doubled their stock values since January, while Tata Motors and Tata Investment Corporation recorded impressive surges of 81% and 94%, respectively. Tata Motors also holds the title of the top gainer on the Nifty 50 for the year.

Tata Technologies, boasting a market capitalization exceeding Rs 53,000 crore, now stands as the ninth most valued Tata Group company. Notably, the newly listed company contributes more than 2% to the overall group market capitalization, surpassing the contributions of Tata Elxsi, Tata Communications, Voltas, and Tata Chemicals.

In a shift from previous trends, most group companies have actively participated in the ongoing market rally. TCS, the group’s largest firm, which once represented nearly 75% of the group’s overall market capitalization in 2020, now constitutes less than 50% of the total.

Leading contributors to the market capitalization addition include Tata Motors, Titan, and Trent. Tata Motors alone has witnessed a staggering Rs 1.2 lakh crore increase in market capitalization in 2023, while Titan and Trent have seen growths of ₹75,000 crore and ₹50,000 crore, respectively.