The IPO sold seven times in two days, with ‘good signs’ coming from the gray market.

New Delhi. The Thai Casting IPO was opened on February 15. The IPO has been filled seven times in the first two days. The company aims to raise Rs 47 crore through the SME IPO. The Thai casting IPO will be listed on the NSE SME platform. Investors can bid for shares of this IPO till February 19. This means that investors now have only one day left to invest in the IPO. Thai IPO shares are trading at a premium on the gray market (Thai Casting IPO GMP). This means that the gray market expects the IPO to provide listing benefits to investors.

Thai Casting’s IPO received seven times subscription on Friday, the second day of the bidding process. The category reserved for retail investors was booked 11.7 times, followed by NII at 3.8 times and QIB share at 1.05 times. The price band of the Thai IPO is Rs 73-77. 50% of the offering is reserved for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors.

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1600 shares in one lot
Investors can bid for 1600 shares in 1 lot. The IPO is an entirely fresh equity issue of 61.2 lakh shares and the company aims to raise Rs 47.5 crore through the issue. The company will use the capital raised from the IPO for capital expenditure and general corporate purposes.

Getting signals from the gray market
Thai Casting’s unlisted shares are trading at a premium on the gray market. Shares of Thai Casting are currently trading at a premium of Rs 20 on the gray market, according to IPO Watch, a website that monitors the gray market. This means that this IPO can give investors a listing gain of 26 percent. However, investors should always keep in mind that IPO shares that are trading at a premium in the gray market are not necessarily listed at a premium in the stock market. The opposite can also happen.

The Thai casting industry is expected to grow at a CAGR of 15-20%.
Thai Casting is a renowned automotive accessories company, specializing in high pressure die casting as well as precision and induction heating and quenching of both ferrous and non-ferrous materials. The Indian die casting industry is expected to grow at a CAGR of 15-20% over the next 2 years. The industry is expected to benefit greatly from the government’s Make in India and Self-sufficient India initiatives.

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