Thaai Casting IPO Allotment Status

Understand the basics of the Thaai Casting Ltd IPO

The stock of Thaai Casting Ltd has a face value of ₹10 per share and it is a book building issue. The price for the book building issue is set in the price band of ₹73 to ₹77 per share. Being a book built issue, the price will be discovered in the above band. The Thaai Casting IPO has only a fresh issue component and no offer for sale (OFS) portion. It must be remembered that the fresh issue portion is EPS dilutive and equity dilutive, but OFS is just a transfer of ownership and  hence it is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Thaai Casting Ltd will issue a total of 61,29,600 shares (61.296 lakh shares), which at the upper band of IPO price of ₹77 per share aggregates to fresh fund raising of ₹47.20 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Therefore, the overall IPO size will also comprise of the issue of 61,29,600 shares (61.296 lakh shares) which at the upper band IPO price of ₹77 per share will aggregate to overall IPO size of ₹47.20 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 3,47,200 shares. Giriraj Stock Broking Private Ltd and Commodity Mandi Private Ltd will be the joint market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The promoter stake in the company will dilute post the IPO from 86.50% to 63.58%.The fresh issue funds will be used by the company towards capex at its plants and for general corporate purposes. Part of the proceeds will also be used to fund working capital gaps. GYR Capital Advisors Private Ltd will be the lead manager to the issue, and Purva Share Registry India Private Ltd will be the registrar to the issue. The market makers for the issue are Giriraj Stock Broking Private Ltd and Commodity Mandi Private Ltd.

How to check allotment status of Thaai Casting Ltd IPO?

 Since this is an NSE SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status for the mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status only on the website of the IPO registrar, Purva Share Registry India Private Ltd. Alternatively, if your broker provides you a link to access the allotment status, you can do the same. Here are the steps that you need to follow to check allotment status.

Checking the allotment status on the website of Purva Share Registry India Private Ltd (Registrar to IPO)

https://www.purvashare.com/queries/

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there is also a way to access this page via the home page of Purva Share Registry Private Ltd by clicking on the Investor services dropdown on the home page and then clicking on the IPO Query link displayed prominently underneath it. It all works the same.

Here, as soon as you click on the link, you are brought to the main landing page. On the top of the page will be the option to select the company for which you want to check the allotment status. Here the company will be available on the drop down list only after the allotment status is finalized on 21st February 2024. You can then select the stock of Thaai Casting Ltd IPO from the drop down list to check the allotment status. 

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Thaai Casting Ltd from the drop down box. The allotment status will be finalized on 21st February 2024, so in this case, you can access the details on the registrar website either late on 21st February 2024 or by middle of 22nd February 2024. Once the company is selected from the dropdown box, you have 2 methods to check the allotment status for the IPO.    

• Firstly, you can access with Application Number / CAF Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly it is given in the acknowledgement slip given to you post the IPO application process. After that you can click on the Search button to get the details of shares allotted to you in the IPO.

• Secondly, you can also search by Income Tax PAN number. Once you select PAN (permanent account number) from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Search Button.

The IPO status with number of shares of Thaai Casting Ltd allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 22nd February 2024.

How allocation quota and subscription impact basis of allotment

Here is a quick look at how the allocation was made across different categories of investors in the IPO of Thaai Casting Ltd.

The response to the IPO of Thaai Casting Ltd was very strong and it was subscribed 375.43X overall at the close of bidding on 20th February 2024. The HNI / NII segment saw robust subscription of 729.72X, while the retail portion saw strong subscription of 355.66X. Even the QIB investors saw subscription of 144.43X. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 20th February 2024. Normally, higher the subscription levels, the lower are the chances of allotment; so, you can look at the subscription levels below and take a call on the chances of allotment in the IPO.

The probability of allotment is inversely related to the extent of subscription. In the above case, since the retail and the HNI portion have got substantially oversubscribed, the chances of allotment are quite low. However, it must be noted that you need to wait for the allotment status to be finalized before you can take any viable call on this.

Next steps in the IPO of Thaai Casting Ltd

The issue opened for subscription on 15th February 2024 and closed for subscription on 20th February 2024 (both days inclusive). The basis of allotment will be finalized on 21st February 2024 and the refunds will be initiated on 22nd February 2024. In addition, the demat credits are also expected to happen on 22nd February 2024 and the stock is scheduled to list on 23rd February 2024 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 22nd February 2024 under ISIN Number (INE0QJL01014).