Thaai Casting SME IPO Review: Navigating the automotive ancillary landscape

Thaai Casting, a prominent automotive ancillary company, is gearing up for its small and medium enterprise (SME) initial public offering (IPO) scheduled for subscription from February 15 to February 19, 2024. With a robust performance and a focus on High-Pressure Die Casting, precision machining, and induction heating, Thaai Casting’s IPO is generating significant market interest.

Key IPO Details:


  1. Subscription Period: February 15 to February 19, 2024
  2. Price Band: ₹73 to ₹77 per share
  3. Minimum Bid: 1600 shares (in multiples thereof)
  4. Minimum Investment (Retail): ₹ 1,23,200
  5. IPO Size: ₹47.20 crores
  6. Fresh Issue: 61.3 lakh shares
  7. Book Running Lead Manager: GYR Capital Advisors Private Limited
  8. Registrar: Purva Sharegistry India Pvt Ltd
  9. Market Maker: Giriraj Stock Broking

Financial Performance:

Thaai Casting exhibited impressive financial growth between March 31, 2022, and March 31, 2023:

  1. Revenue Growth: 27.84% increase from ₹3,841.94 Crore to ₹4,911.64 Crore
  2. Profit Growth: Remarkable 336.49% surge from ₹115.40 Crore to ₹503.71 Crore
  3. Profitability Margin: PAT margin increased from 3% in FY2022 to 10.25% in FY2023

Financial Stability:

  1. Net Worth: Strengthened by 44.21%, reaching ₹1,617.31 Crore in FY2023
  2. Total Debt: Increased by 57.82%, reaching ₹4,410.07 Crore in FY2023

Operational Focus:

Thaai Casting specializes in High-Pressure Die Casting, machining of Ferrous and Non-Ferrous materials, and Induction heating and quenching. The company’s production center in Tamil Nadu produces various automobile components, maintaining a die-making facility for new product development.

Employee Strength:

As of September 30, 2023, Thaai Casting employs 132 workers across multiple departments, emphasizing a commitment to skilled manpower.

IPO Strengths:

  1. Experienced Promoters: Backed by Sriramulu Anandan, Anandan Shevaani, and Chinraj Venkatesan.
  2. Customer Relationships: Well-established ties with a loyal customer base.
  3. Global Reach: Access to markets worldwide for expanded market penetration.

IPO Weaknesses:

  1. Heavy Reliance on the U.S.: Dependency on U.S.-based customers poses a risk.
  2. Regulatory Compliance: Adherence to diverse laws and regulations in various countries is crucial.
  3. Market Competition: Faces competition from other players in the automotive ancillary sector.

Thaai Casting’s SME(IPO) presents a compelling investment opportunity, marked by robust financial performance, operational expertise, and global market access. While facing challenges such as customer reliance and regulatory compliance, the company’s strengths position it favorably in the competitive landscape.