Thaai Casting IPO opens for subscription: Issue size, minimum investment, subscription status and key details

The initial public offering (IPO) of auto ancillary company Thaai Casting Ltd is open for subscription starting from Thursday, February 15. The offer will be open for bidding for three days and will close on Tuesday, February 20.

The ₹47-crore IPO of the automobile auxiliary firm was fully subscribed on the opening day. The Thaai Casting Ltd IPO subscribed 1.72 times till 3:30 PM on Thursday, as per NSE data.

If you are planning to subscribe to the Thaai Casting IPO, here are some key details that you should know.

Thaai Casting IPO: Issue size

The Thaai Casting IPO is an SME IPO and, hence, the shares will list on the NSE SME platform.

It is a book-built issue comprising fresh issuance of 6.13 million shares. There is no offer-for-sale (OFS) component. The company plans to raise ₹47.2 crore through the offer.

The company said that net proceeds from the IPO will be utilized for capital expenditure requirements and general corporate expenses.

Thaai Casting IPO: Price band, lot size, minimum investment and subscription status

The price band of the offer has been fixed at ₹73-77 per share with a face value of ₹10 each. The lot size is 1,600 shares for retail investors, which translates into an application amount of ₹1.23 lakh. High networth investors need to bid for at least 2 lots (3,200 shares) of the company amounting to ₹2.46 lakh.

The company has reserved almost 50% of the issue for qualified institutional buyers (QIBs). The investors’ portion has been fixed at 35% of the total issue size, with non-institutional investors (or high networth individuals) getting the remaining 15%.

According to the NSE data, the IPO received bids for over 75.61 shares as against 43.95 lakh shares on offer on the opening day (till 3:40 PM).

Thaai Casting IPO allotment and listing dates

The share allotment is likely to be finalised by the company on February 21, while the stock is expected to make its trading debut on February 23.

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

About the company and financials

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 and top cover. 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) grew manifold to ₹5 crore in FY23 compared with ₹1.15 crore a year ago.