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Thaai Casting Ltd IPO - Review, Valuation, Opening Date & GMP

  


Thaai Casting Ltd IPO - Complete Overview

Thai Casting Limited, founded in 2010 by Mr. Sriramulu Anandan, specialises in making car parts using high-pressure die casting and precise machining. They sell their products to big names in the car industry and are known for their high-quality products and environmental concern, supported by certifications and awards like the one from Maruti Suzuki India Limited.

Thai Casting Limited focuses on automotive components such as engine mounts and transmission parts. They operate in three business verticals: High Pressure Die Casting, Machining of Ferrous and Non-Ferrous materials, and Induction Heating and Quenching. 

Their manufacturing unit is located in No Tiruvallur, Tamil Nadu, India, and they have a die-making facility for new product development. The company takes extra care to maintain the dies properly so they last longer and keep running smoothly.

 

Thaai Casting Ltd IPO Overview

Thaai Casting Ltd IPO date is slated to be open for subscription from February 15, 2024, to February 19, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Thaai Casting Ltd IPO price is fixed at Rs.73 - Rs. 77 per share.

The total issue size of this IPO amounts to Rs.47.20 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

 

Thaai Casting Ltd IPO timetable (Tentative)

Events

Date

IPO Opening Date

15 February 2024

IPO Closing Date

19 February 2024

IPO Allotment Date

20 February 2024

Refund initiation

21 February 2024

IPO Listing Date

22 February 2024

 

Thaai Casting Ltd IPO Details

IPO Opening & Closing Date

15 February to 19 February 2024

Face value

Rs.10 per share

Issue Price

Rs. 73- Rs. 77 per share

Lot Size

1600 Shares

Price of 1 lot

Rs. 1,23,200

Total Issue Size

6,129,600 shares (aggregating up to Rs.47.20 Cr)

Fresh issue

6,129,600 shares (aggregating up to Rs.47.20 Cr)

Listing at

NSE SME

Issue Type

Book Built Issue IPO

Registrar

Purva Sharegistry India Pvt Ltd

 

Thaai Casting Ltd IPO Lot Details

Application

Lot

Shares

Amount

Minimum Lot Investment (Retail)

1 lot

1600

Rs.1,23,200

Maximum Lot Investment (Retail)

1 lot

1600

Rs.1,23,200

Minimum Lot Investment (HNI)

2 lot

3,200

Rs.2,46,400

 

Thaai Casting Ltd IPO Reservation

QIB Shares Offered

Maximum 50%

Retail Shares Offered

Minimum 35%

Other Shares Offered

Minimum 15%

 

Company Financial

In FY23, the company witnessed growth in Financials compared to FY22.

(Amount in Lakhs)

Period

Oct 31, FY 23

Mar 31, FY 23

Mar 31, FY 22

Total Assets

8,188.82

5,498.52

3,752.29

Total Revenue

2,888.93

4,911.64

3,841.94

PAT

557.12

503.71

115.40

Net worth

2,320.78

1,617.31

894.84

Reserve & Surplus

620.78

   

Total Borrowings

4,410.07

2,985.10

2,351.15

 

State-Wise Revenue Bifurcation

Tamil Nadu contributed the highest percentage of revenue, followed by other states with significant shifts compared to last year.

(in % age)

Particulars

OCT 31, FY 23

Mar 31, FY 23

Mar 31, FY 22

Andhra Pradesh

0.48%

2.08%

0.27%

Haryana

0.43%

0.51%

0.26%

Karnataka

12.59%

10.41%

0.00%

Kerala

0.00%

0.00%

0.07%

Maharashtra

1.31%

4.83%

3.84%

Puducherry

0.00%

0.00%

0.00%

Rajasthan

0.38%

0.22%

25.79%

Tamil Nadu

84.80%

81.94%

69.78%

Total

100.00%

100.00%

100.00%

 

Sector-Wise Revenue Bifurcation

The automotive sector generated the most revenue, followed by the other sectors compared to last year.

(in % age)

Particulars

Oct 31, FY 23

Mar 31, FY 23

Mar 31, FY 22

Agriculture Sector

1.72%

1.05%

0.00%

Automotive Sector

91.25%

87.21%

82.38%

Non-Automotive Sector

6.11%

9.86%

12.90%

Power Sector

0.91%

1.88%

4.72%

Textile Sector

0.00%

0.00%

0.00%

Total

100.00%

100.00%

100.00%

 

Results of Our Operations

Their operations made more money and spent more compared to last year, resulting in higher taxes and profits.

(Amount in Lakhs)

Particulars

Oct 31, FY 23

Mar 31, FY 23

Mar 31, FY 22

Total Revenue (A)

2,888.93

4,911.64

3,841.94

Total Expenses (B)

2,135.81

4,191.49

3,665.80

(A-B) Net tax expense 

196.00

216.44

60.74

Profit/(Loss) for the year

557.12

503.71

115.40

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives. 

  • Covering capital expenditure needs.

  • Addressing general corporate purposes.

  •  Managing issue expenses.

 

Promoters and Management of Thaai Casting Ltd IPO

1. Sriramulu Anandan.

2. Anandan Sivamani.

3. Chinraj Venkatesan.

Pre-issue Promoter Shareholding

86.50%

Post-issue Promoter Shareholding

 

 

Thaai Casting Ltd IPO Lead Managers

  • GYR Capital Advisors Private Limited 

 

Peers of Thaai Casting Ltd IPO

Thaai Casting Ltd IPO Offers a share with neutral face value and competitive P/E and EPS ratios compared to peers.

Name of the Company

Face Value (Rs. per share)

P/ E

EPS (Basic) (Rs.)

Thaai Casting Ltd

10

26.01

2.96

Endurance Technologies Ltd

10

41.98

29.07

Electro Steel Casting Limited

10

16.70

5.63

 

Evaluation

The IPO is priced within the range of Rs.  73- Rs. 77 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 2.96 from the last year, the resulting P/E ratio is 26.01x.

- Taking into account the weighted EPS of Rs 1.75 for the last three years, the P/E ratio amounts to 44x.

    

Comparative Analysis with Listed Peers:

- Endurance Technologies Ltd has a P/E ratio of 41.98x (the highest).

- Electro Steel Casting Limited has a P/E ratio of 16.70x (the lowest).

- The industry's average P/E is 29.34x.

 

As a result, the IPO price range, with a P/E ratio ranging from 26.01x to 44x, seems neutral in comparison to the industry average of 29.34.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

  • Continuous Improvement (KAIZEN Process).

  • Workforce Expertise.

  • Leadership Excellence.

  • Production Scalability.

  • Advanced Inspection Systems.

  • Delivery Commitment.

 

IPO's Weaknesses

  • Cost Management.

  • Talent Turnover Management.

  • Technological Disruption.

  • Environmental Regulation Compliance.

 

 

IPO GMP Today

The Latest GMP of Thaai Casting Ltd IPO is Rs. 80.

 

Conclusion

 In summary, Thaai Casting Ltd IPO offers investors an opportunity to invest in a company with a strong foothold in the automotive industry, specialising in high-quality car parts production. The IPO's pricing, within the range of Rs. 73- Rs. 77 per share, appears reasonable, considering the company's financial performance and industry comparisons. The company's strengths in continuous improvement, workforce expertise, and production scalability provide a solid foundation for future growth. However, investors should also consider the potential weaknesses, such as cost management and technological disruptions. 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

 

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Frequently Asked Questions

+

Thaai Casting Ltd IPO is scheduled to be open for subscription from February 15, 2024, to February 19, 2024.

 

+

The price range of Thaai Casting Ltd IPO is fixed at Rs. 73 - Rs. 77 per share.

+

The total issue size of Thaai Casting Ltd IPO amounts to Rs. 47.20 CR, with a combination of fresh issue and offer for sale.

+

The IPO opening date is February 15, 2024, and the closing date is February 19, 2024. The allotment date is February 20, 2024, and the listing date is February 22, 2024.

 

+

Thaai Casting Ltd IPO's strengths include continuous improvement, workforce expertise, leadership excellence, and production scalability. Its weaknesses include cost management, talent turnover management, and technological disruptions.



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