Bumper Debut | Thaai Casting lists at over 141% premium to IPO price on NSE SME

The stock of Thaai Casting made an impressive debut, listing at a 141.42 percent premium over the IPO price on February 23. The stock opened at Rs 185.9 against the issue price of Rs 77 on the NSE SME platform.

Ahead of the listing, the shares were commanding a 103 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

The bumper listing was on the back of strong subscription figures. The offer was subscribed 375 times with the retail portion getting booked 355 times and non-institutional investors picking up shares 729 times the quota. The price band for the public offer, which opened for subscription on February 15 and closed on February 20, was fixed at Rs 73-77 per share. Through the IPO, the company raised Rs 47.2 crore. The offer comprised a fresh issue of 61.29 lakh shares.

The company's promoters are Sriramulu Anandan, Anandan Shevaani and Chinraj Venkatesan. GYR Capital Advisors was the book-running lead manager, Purva Sharegistry India was the registrar and Giriraj Stock Broking and Commodity Mandi were the market-makers for the issue.

The company plans to use the net fresh issue proceeds to meet the capital expenditure and for general corporate purposes.

Thai Casting is an automotive ancillary company specialising in high-pressure die-casting, as well as the precision machining of both ferrous and non-ferrous materials and Induction heating and quenching.