Thaai Casting makes strong debut Dalal Street: Shares soar 141% above IPO price in a stellar debut

The Thaai Casting stock listed at ₹185.9 apiece on the NSE Emerge platform compared to its initial public offering (IPO) price of ₹77.

To recall, the Thaai Casting Ltd IPO price band was fixed at ₹73-77 per share of face value of ₹10 each, while the lot size was 1,600 shares. This aggregated to a minimum application amount of ₹1.23 lakh for retail investors.

The bumper listing of Thaai Casting meant that retail investors who were allotted shares in the IPO were sitting on a profit of at least ₹1.74 lakh on the first day of trade itself.

The Thaai Casting Ltd IPO was oversubscribed by a huge 345.85 times during the three-day bidding period that ended on February 19. The public issue had received total bids for 152 crore shares against 43.95 lakh shares on offer.

According to the data available on NSE, the qualified institutional buyers’ (QIB) portion had received bids for 16.7 crore shares against 11.56 lakh equity shares on offer.

The Non-institutional investors (NIIs) had placed bids for 63.31 crore equity shares as against 8.67 lakh equity shares reserved for them. Meanwhile, the quota reserved for retail investors garnered bids for 71.98 crore equity shares against 20.24 lakh shares set aside for the category.

The Thaai Casting IPO was a book-built issue comprising fresh issuance of 6.13 million shares with no offer-for-sale (OFS) component. The company had planned to raise ₹47.20 crore through the offer.

Thaai Casting had earlier said that net proceeds from the IPO would be utilized for capital expenditure requirements and general corporate expenses.

The company had reserved almost 50% of the issue for QIBs. The retail investors’ portion was fixed at 35% of the total issue size, while non-institutional investors (or high networth individuals) got the remaining 15%.

Thaai Casting had appointed GYR Capital Advisors Pvt. Ltd as the book running lead manager of the IPO. The registrar for the issue was Purva Sharegistry India Pvt. Ltd, with the market maker being Giriraj Stock Broking.

Incorporated in 2011, Thaai Casting is a Tamil Nadu-based automotive ancillary company that specializes in high-pressure die casting, as well as the precision machining of both ferrous and non-ferrous materials along with induction heating and quenching. It mainly caters to leading entities in the automotive components sector.

The company’s product portfolio includes a diverse range of automobile components, including engine mounting support brackets, transmission mounts, fork shift and housing, armature -- steering wheel, electrical connectors, top cover, and more.

The company’s promoters are Sriramulu Anandan, Anandan Shevaani and Chinraj Venkatesan. During 2022-23, Thaai Casting’s revenue jumped 27.8% to ₹48.9 crore compared with ₹38.3 crore a year ago. Profit after tax (PAT) multiplied to ₹5 crore in FY23 compared with ₹1.15 crore a year ago.