Thai Casting debuts with 141% premium on NSE SME platform

The shares of Thai Casting listed with a premium of 141.4% on the NSE SME platform on Friday. The stock debuted at Rs 185.9 as against an issue price of Rs 77.

Ahead of the listing, the company‘s shares traded with a premium of Rs 70 in the unlisted market. The IPO, which is an entirely fresh equity issue of 61.2 lakh shares, was subscribed over 300 times at close.

The net proceeds from the public offer will be used for capital expenditure and general corporate purposes.

The company is a distinguished automotive ancillary company, specializing in high pressure die casting, as well as the precision machining of both ferrous and non-ferrous materials and induction heating and quenching.

Its business model is firmly rooted in a B2B approach, catering to leading entities in the automotive components sector. The product portfolio encompasses a diverse range of automobile components, including engine mounting support brackets, transmission mounts, fork shift and housing, Armature – steering wheel, electrical connectors, YFG base frame.

The company has three business verticals namely high pressure die casting, machining of ferrous and non-ferrous and induction heating and quenching.Thai Casting said it emphasises excellence through advanced inspection systems in aluminum die casting and Induction Heating and
Quenching (IHQ). The company’s facilities feature up-to-date inspection technologies for quality assurance in both aluminum die
casting and IHQ processes.

The Indian die casting industry is expected to grow at a CAGR of 15-20% in the next 2 years, driven by factors such as increasing demand from automotive, electronics, and consumer goods sectors. The industry is also expected to benefit from the government’s focus on “Make in India” and “Atma Nirbhar Bharat” initiatives.

For the period ended October 2023, the company clocked revenues of Rs 28.8 crore and net profit of Rs 5.57 crore.

GYR Capital Advisors acted as the lead manager to the issue and Purva Sharegistry is the registrar.

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