Thaai Casting
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Feb 2024 – 20 Feb 2024
- Listing date
- 23 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹77 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹47.20 Cr
- Market cap at offer price
- ₹178 Cr
- Promoter holding
- 86.50% → 63.58% pre-issue → post-issue
- ISIN
- INE0QJL01014
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- No.A-20 SIPCOT Industrial Park, 7th Cross Street, Pillaipakkam, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 17,34,400 | — | — |
| Market maker | 3,47,200 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹77
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,23,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,46,400 |
| S-HNI (max) | 8 | 12,800 | ₹9,85,600 |
| B-HNI (min) | 9 | 14,400 | ₹11,08,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.96 | 6.38 |
| P/E (×) | 26.01 | 12.07 |
| Price to book (×) | 8.10 | — |
| Market cap | — | ₹178 Cr |
Key performance indicators
- Return on net worth
- 40.10%
- ROCE
- 13.00%
- Debt / equity
- 1.85
- PAT margin
- 10.29%
- NAV per share
- ₹9.51
- Price to book
- 8.10
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Thaai Casting
Thaai Casting Limited was originally formed as a Partnership Firm M/s Thaai Casting under the Partnership Act, 1932 (Firm Registration Number FR/Chennai South/1102/2010) pursuant to a Deed of Partnership dated June 02, 2010. The firm was subsequently converted into a public limited company on June 12, 2023, with the name 'Thaai Casting Limited'. The company is an automotive ancillary manufacturer with IATF 16949:2016 certification, specializing in High-Pressure Die Casting (HPDC) and precision machining of both ferrous and non-ferrous materials. Founded by Mr. Sriramulu Anandan, a seasoned professional with extensive expertise in Pressure Die Casting and Machining Processes, the company operates on a B2B model serving leading automotive components manufacturers. The product portfolio includes engine mounting support brackets, transmission mounts, fork shifters, housings, armature-steering wheels, electrical connectors, and various other automobile components. The company received MSIL-GREEN Certification from Maruti Suzuki India Limited in 2021 and was recognized with awards for quality and vendor excellence from industry leaders Hanon and RSB in 2022.
Company Analysis
from RHPThaai Casting Limited is an IATF 16949:2016 certified automotive ancillary company specializing in High-Pressure Die Casting, precision machining of ferrous and non-ferrous materials, and induction heating and quenching, serving the automotive components sector.
Thaai Casting Limited was originally formed as a Partnership Firm M/s Thaai Casting under the Partnership Act, 1932 (Firm Registration Number FR/Chennai South/1102/2010) pursuant to a Deed of Partnership dated June 02, 2010. The firm was subsequently converted into a public limited company on June 12, 2023, with the name 'Thaai Casting Limited'. The company is an automotive ancillary manufacturer with IATF 16949:2016 certification, specializing in High-Pressure Die Casting (HPDC) and precision machining of both ferrous and non-ferrous materials. Founded by Mr. Sriramulu Anandan, a seasoned professional with extensive expertise in Pressure Die Casting and Machining Processes, the company operates on a B2B model serving leading automotive components manufacturers. The product portfolio includes engine mounting support brackets, transmission mounts, fork shifters, housings, armature-steering wheels, electrical connectors, and various other automobile components. The company received MSIL-GREEN Certification from Maruti Suzuki India Limited in 2021 and was recognized with awards for quality and vendor excellence from industry leaders Hanon and RSB in 2022.
Objects of the Issue
- Capital Expenditure Up to ₹3,730.00 lakhs p.26
- General corporate purposes [●] (not exceeding 25% of gross proceeds) p.26
- Issue Expenses [●] p.26
- Capital Expenditure Upto 3,730.00 lakhs p.79
- General Corporate Purposes [●] p.82
- Issue Expenses [●] p.82
Issue Structure
- Total Issue
- Up to ₹[●] lakhs (61,29,600 Equity Shares of face value of ₹10/- each)
- Fresh Issue
- 61,29,600 Equity Shares aggregating Up to ₹[●] lakhs
- Offer for Sale
- Nil (Not applicable as this is a fresh issue)
- Price Band
- ₹[●] (Floor Price) to ₹[●] (Cap Price) - to be decided by the Company in consultation with BRLM
- Lot Size
- [●] Equity Shares as bid lot and in multiples thereof
- Face Value
- ₹10/- per Equity Share
Business Model
B2B model wherein the company manufactures automotive components for leading automotive OEMs and suppliers. Revenue is generated through the supply of High-Pressure Die Casting components and precision machined parts (ferrous and non-ferrous) for vehicle assemblies. The company operates on purchase order basis from customers and serves the four-wheeler automotive market in India.
Business Segments
SWOT Analysis
- • IATF 16949:2016 certification and specialization in HPDC with precision machining and IHQ capabilities(p.25)
- • Strong environmental credentials with MSIL-GREEN Certification and awards from industry leaders(p.25)
- • Revenue growth trajectory with PAT growth from ₹40.33 lacs (FY2021) to ₹557.12 lacs (Oct 2023)(p.27)
- • Experienced founder with extensive expertise in pressure die casting and machining processes(p.25)
- • No unionization of workforce currently(p.50)
- • Continuous improvement culture using Kaizen philosophy(p.88)
- • High return on net worth demonstrating profitability(p.89)
- • Strong EBITDA margins indicating operational efficiency(p.89)
- • Continuous improvement culture through Kaizen process(p.116)
- • Advanced inspection systems for quality assurance(p.117)
- • Skilled workforce and production scalability(p.117)
- • IATF 16949:2016 certification and industry awards(p.104)
- • Diverse product portfolio and customer base(p.104)
- • Specialized expertise in precision manufacturing(p.103)
- • Prompt delivery commitment(p.117)
- • Established relationships with leading automotive OEMs(p.142)
- • High dependence on automotive four-wheeler sector—84.80% revenue in Oct 2023 from this segment(p.32)
- • Geographic concentration with Tamil Nadu contributing 84.80% of revenue (Oct 2023)(p.34)
- • Heavy supplier concentration with top ten suppliers accounting for 90.69% of procurement (Oct 2023)(p.33)
- • Recent conversion from partnership to public company (June 2023) with incomplete administrative transitions and registrations still in old firm name(p.34)
- • Outstanding income tax demand of ₹6.94 lacs (AY 2018) and TDS defaults of ₹32.13 lacs with no provision made(p.36)
- • History of GST and statutory payment delays with penalties of ₹189.85 lacs paid in FY2020-21(p.40)
- • High debt leverage with total borrowings of ₹4,410.07 lacs representing 55% of total capitalisation (Oct 2023)(p.42)
- • High manpower dependence with reliance on contract labour and no long-term labour agreements(p.44)
- • No long-term supplier or customer contracts; orders are typically for 1-12 months duration(p.41)
- • Certain erroneous agreements from partnership era not yet fully rectified(p.41)
- • Risk of employee unionization and wage pressures(p.50)
- • Concentration of revenues among few customers(p.89)
- • Future equity dilution from share issuances(p.50)
- • High debt-equity ratio of 1.90(p.89)
- • Risk of implementation delays affecting revenue(p.50)
- • Dependence on automotive sector for revenue concentration(p.109)
- • High leverage with debt-equity ratio of 1.90(p.139)
- • Low capacity utilization in IQT machines(p.135)
- • Declining capacity utilization in machine shop VMCs(p.139)
- • Top 1 customer contributes 5.87% of revenue, indicating concentration risk(p.141)
- • Indian die casting industry expected to grow at CAGR of 15-20% over next 2 years(p.25)
- • Government support for Make in India and Atmanirbhar Bharat initiatives promoting domestic manufacturing(p.25)
- • Aluminum becoming metal of choice with India at 45kg per vehicle vs global average of 180kg, indicating significant adoption upside(p.25)
- • Diversification into non-automotive, wind power, construction and instrumentation sectors(p.33)
- • Capital expenditure of ₹3,730 lacs planned to expand manufacturing capacity and capabilities(p.26)
- • Capacity expansion through capital machinery investments(p.79)
- • Growing global aluminum casting market(p.99)
- • High growth potential in Indian die casting industry(p.102)
- • Government support through Make in India and Atmanirbhar Bharat initiatives(p.102)
- • Increasing aluminum usage in automotive sector(p.102)
- • Growing aluminium consumption with significant headroom(p.103)
- • Increasing use of lightweight materials in electric vehicles(p.109)
- • Growth in gravity die casting segment(p.109)
- • Simulation-based casting driving market growth(p.109)
- • Government support for automotive and die casting industry(p.109)
- • Expansion into emerging technologies and sectors(p.109)
- • Automotive sector performance volatility affecting demand; adverse changes in four-wheeler market conditions(p.32)
- • Raw material price volatility and supply disruptions, particularly in aluminum ingots(p.33)
- • Customer discontinuation or loss of business with particular vehicle models reducing sales(p.36)
- • Intense competition from global players with greater resources and from low-cost Chinese manufacturers(p.41)
- • Power supply disruptions and tariff volatility affecting high-power-consumption manufacturing operations(p.40)
- • Regulatory and compliance risks including stricter safety, health and environmental laws(p.47)
- • Economic slowdown and pandemic-related disruptions affecting demand and operations(p.43)
- • Foreign exchange rate fluctuations affecting import costs and international competitiveness(p.37)
- • Natural calamities and force majeure events(p.48)
- • Changes in Indian tax regime including GST and GAAR(p.48)
- • Economic slowdown and dependence on Indian economy(p.49)
- • Interest rate fluctuations affecting borrowing costs(p.50)
- • Foreign investor restrictions limiting capital access(p.50)
- • Downgrading of India's debt rating affecting financing(p.50)
- • Circuit breaker restrictions on daily share price movements(p.50)
- • Uncertainty in automotive powertrain technology transition(p.109)
- • Potential shift to zinc die casting in automotive applications(p.109)
- • Environmental regulation compliance requirements(p.109)
- • Competitive pressure from established manufacturers(p.103)
- • Raw material price volatility and supply dependence(p.138)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sriramulu Anandan | Promoter | 74.66% | — |
| Anandan Shevaani | Promoter | 0.57% | — |
| Chinraj Venkatesan | Promoter | 7.94% | — |
| Anandan Shevaani | Promoter | 0.57% | [●] |
| Sriramulu Anandan | Promoter | 74.66% | [●] |
| Chinraj Venkatesan | Promoter | 7.94% | [●] |
| Sri Ramulu Rajasekar Ramakrishnan | Promoter Group | 0.57% | [●] |
| Samundeswari | Promoter Group | 1.72% | [●] |
| Yedulla Reddy Roshan | Promoter Group | 0.52% | [●] |
| R Kavitha | Promoter Group | 0.52% | [●] |
| Mr. Sriramulu Anandan | Promoter, Chairman and Managing Director | 74.66% | — |
| Ms. Shevaani Anandan | Promoter, Whole Time Director | 0.57% | — |
| Mr. Chinraj Venkatesan | Promoter, Whole Time Director | 7.94% | — |
| S. Anandan | Promoter/Managing Director | 74.66% | — |
| C. Venkatesan | Promoter/Whole Time Director | 7.94% | — |
| S.A. Shevaani | Promoter/Whole Time Director cum CFO | 0.57% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.