Profit Booking: Tata Technologies shares crash 8%; m-cap slips below Rs 50,000 crore

Tata Technologies shares: Amid profit booking, the shares of Tata Technologies plunged about 8% during the early trading session on Friday. On the second day of trading the stock fell sharply, heading towards its listing price.

Share Price

On its maiden trading session Tata Technologies shares closed at Rs 1,314.25. At around 12:15 PM, the stock was trading at around Rs 1,229. The total market capitalization also dropped below Rs 50,000 crore before making a slight recovery to reclaim the mark.

Also Read: Tata Technologies IPO: Shares list at 140% premium over IPO price

Profit Booking

Profit Booking is a strategy adopted by investors to gain profit by selling the shares they are holding. In the stock market world, when you invest your money in stocks, or buy shares of any company with the expectation that it will rise and you can sell at a higher point and book some profits. It is simply the act of selling the security to gain some profits by liquidating your investment in the stock market whether it's in the cash market or derivatives segment.

Tata Technologies IPO

The share prices of Tata Tech on the first day of its listing was at Rs 1,200 - a 140% premium over its issue price at Rs 500. By the time of closing, the stock surged another 17% and settled at Rs 1,400 taking the overall gains to 180 per cent over the issue price.

Tata Technologies was the first company of the Tata group to go public in nearly two decades. It sold its IPO in the range of Rs 475-500 apiece with a lot size of 30 shares. The issue was open for bidding between November 22 and November 24 to raise a total of Rs 3,042.51 crore, which was entirely an offer for sale by the promoter and other selling shareholders of the company.

The issue saw a huge demand across all the categories of investors. It saw an overall subscription of 69.43 times, attaching 73,58,222 bids worth more than Rs 1 lakh crore.