Thaai Casting IPO - Review & Fundamental Analysis
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Thaai Casting IPO

Thaai Casting consists of a fresh issue of 61,29,600 equity shares aggregating to INR 47.20 crores. The company seeks funds to meet its capital expenditure and general corporate purposes.

Thaai Casting Ltd IPO – Important Details 

Thaai Casting IPO DateFebruary 15, 2024 to February 20, 2024
Thaai Casting IPO Listing DateFebruary 23, 2024
Thaai Casting IPO PriceINR 73-77 per share
Thaai Casting IPO Lot Size1600 Shares
Thaai Casting IPO Total Issue SizeINR 4720 lakhs
Thaai Casting IPO Basis of AllotmentFebruary 21, 2024
Thaai Casting IPO Initiation of RefundsFebruary 21, 2024
Thaai Casting IPO Credit of Shares to DematFebruary 22, 2024
Thaai Casting IPO Issue TypeBook Built Issue
Thaai Casting IPO Listing AtNSE SME

Thaai Casting Ltd IPO – Company Profile 

Thaai Casting, an esteemed automotive ancillary company, holds IATF 16949:2016 certification. They specialize in high-pressure die casting, precision Molding of ferrous and non-ferrous materials, and induction heating and quenching services.

They operate with a B2B model, serving top automotive component entities. Their diverse product range includes engine mounting support brackets, transmission mounts, armor, electrical connectors, and more, catering to industry needs.

They operate three business verticals: High-Pressure Die Casting, Machining of Ferrous and Non-Ferrous materials, and Induction Heating and Quenching. Committed to excellence, it delivers premium automotive products and services. 

Thaai Casting Limited IPO – Fundamental Analysis

Thaai Casting Ltd’s IPO reveals a company on a robust growth path, with significant increases in revenue, profitability, and equity. Its impressive RoNW and EPS growth highlight strong financial health and potential for future expansion.

Revenue Growth:

The company has demonstrated significant revenue growth, from ₹2,042.87 lakhs in 2021 to ₹4,896.06 lakhs in 2023. This consistent increase indicates an expanding market presence and demand for its products.

Equity Expansion:

Equity has more than tripled, from ₹473.46 lakhs in 2021 to ₹1,617.31 lakhs in 2023, reflecting strong investor confidence and possibly effective capital management to support growth.

Profitability:

Profit after tax has shown an impressive increase, from ₹40.33 lakhs in 2021 to ₹503.71 lakhs in 2023, indicating growth in operations and substantial improvements in efficiency and profitability.

Return on Net Worth (RoNW):

The RoNW has significantly improved, from 8.49% in 2021 to 40.10% in 2023, showcasing its effectiveness in generating profits from its equity base.

Diluted EPS:

The Diluted EPS has increased markedly, from ₹0.24 in 2021 to ₹2.96 in 2023, highlighting the company’s growing profitability per share.

Asset and Liability Management:

Total assets have more than doubled, indicating expansion and investment in the business. Liabilities have also increased but at a pace that suggests manageable debt levels in relation to its growth.

NAV per Equity Share:

The NAV per equity share has increased significantly, from ₹2.79 in 2021 to ₹9.51 in 2023, reflecting an increase in the intrinsic value of the company’s shares.

Thaai Casting Ltd IPO Financial Information 

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in lakhs)2,042.873,833.804,896.06
Equity (₹ in lakhs)473.46894.841,617.31
Expenses (₹ in Million)1,990.063,665.804,191.49
Profit and Loss After Tax (₹ in lakhs)40.33115.40503.71
RoNW (%)8.4916.8740.10
Diluted EPS only (₹)0.240.682.96
NAV per Equity Share (₹)2.795.269.51
Total Assets (in lakhs)2,379.193,752.295,498.52
Total Liabilities (in lakhs) 1,905.732,857.453,881.2

Thaai Casting Ltd IPO Peer Comparison 

Thaai Casting Limited showcases a remarkable RoNW of 40.10% with an EPS of ₹2.96, outperforming peers like Endurance Technologies and Electro Steel Casting in terms of profitability efficiency despite a significantly smaller total income, indicating strong operational effectiveness.

CompanyTotal Income (₹ in lakhs)Face Value per Equity Share (₹)P/E Ratio (Times)EPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Thaai Casting Limited2,888.93^10NA2.9640.109.51
Endurance TechnologiesLimited6,79,571.001041.9829.0712.28236.81
Electro Steel Casting Limited7,01,253.001016.75.637.84718.17

Thaai Casting Limited IPO Objective 

The main objective of Thaai Casting is to fund its capital expenditure. 

  1. Capital Expenditure: The company intends to deploy Net Proceeds aggregating up to INR 37.30 crores towards capital expenditure, including machinery for manufacturing products relating to die casting. 
  1. General corporate purposes: The Company plans to deploy the balance funds towards the general corporate goals, including Investments aligning with company policy and meeting exigencies, salaries, and expenses.

Thaai Casting Limited IPO Risks And Challenges 

Thaai Casting risks include heavy reliance on the Indian automotive sector, few aluminum suppliers, and Tamil Nadu revenue. Market fluctuations, supply chain disruptions, and policy changes could impact financial stability. 

  • Their business heavily relies on the Indian automotive sector, particularly four-wheelers. Concentrating on this segment exposes them to market fluctuations. Diversification could mitigate risks from declining demand or adverse regulatory changes.
  • Their company heavily relies on a few suppliers for aluminum alloy ingots, with the top ten suppliers accounting for a significant percentage of procurement. Any disruptions in the supply chain could adversely affect operations and lead to customer loss and liabilities.
  • Their company heavily depends on revenue from Tamil Nadu, making up a significant portion. Any changes in government policy, economic conditions, financial market, or industry laws could severely impact their business financially.

Thaai Casting Ltd IPO – Industry & Market Potential

The global aluminum casting market, valued at $72.9 billion in 2022, is projected to reach $124.9 billion by 2032, growing at a 5.6% CAGR. Increased aluminum usage, particularly in transportation, drives growth spurred by regulations favoring lightweight materials for fuel efficiency.

The Indian die-casting industry is poised for 15-20% CAGR growth in the next two years, driven by demand for automotive, electronics, and consumer goods. Government initiatives like “Make in India” and infrastructure improvements fuel industry expansion.

India’s die-cast aluminum parts find primary use in automotive and electrical industries. Emerging power sources and demand for lighter materials like aluminum due to lithium-ion batteries will shape the future dynamics of the industry. 

Thaai Casting Limited IPO – Type of Offer

Thaai Casting Limited IPO will have a fresh issue of 61,29,600 equity shares. The company seeks funds to meet its capital expenditure and general corporate purposes.

Thaai Casting Limited IPO Offer Size 

The offer size of Thaai Casting is INR 47.20 crores. The company seeks funds to meet its capital expenditure and general corporate purposes.

Thaai Casting Ltd IPO Allotment Structure

Thaai Castings Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 3,47,200 shares for Market Makers.

  • Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
  • Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 3,47,200 shares for this purpose.

How to apply for a Thaai Castings IPO through Alice Blue?

To apply for the Thaai Castings IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue
  2. Check for IPO Details: Once your account is active, you can check for the Thaai Castings IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Thaai Casting IPO at Alice Blue in just a few clicks!

 Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Thaai Castings’ IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

 Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

  1. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  2. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  3. Select the Thaai Castings IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Thaai Castings IPO. 
  4. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the Thaai Castings IPO:

Registrar’s Website: Visit the website of Purva Sharegistry (India) Private Limited, t