ASK Automotive IPO ends with robust subscription

Published on Nov 10, 2023 16:28

The initial public offer (IPO) of ASK Automotive received bids for 1,05,85,92,956 shares as against 2,06,99,974 shares on offer. The issue was subscribed 51.14 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 142.41 times. The Non Institutional Investors (NIIs) category was subscribed 35.47 times. The Retail Individual Investors (RIIs) category was subscribed 5.70 times.

The issue opened for bidding on Tuesday (7 October 2023) and it closed on Thursday (9 November 2023). The price band of the IPO was fixed at Rs 268-282 per share.

The offer comprised only an offer for sale of 2,95,71,390 equity shares worth Rs 833.91 crore by existing shareholders- Kuldip Singh Rathee and Vijay Rathee.

The company will not directly receive any proceeds from the offer, and all the proceeds will be received by the selling shareholders, in proportion to the offered shares sold by them.

The promoters and promoter group held 100% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 85%.

Ahead of the IPO, ASK Automotive on Monday, 6 November 2023, raised Rs 250.17 crore from anchor investors. The board allotted 88.71 lakh shares at Rs 282 each to 25 anchor investors.

ASK Automotive is largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India. Company had a market share of approximately 50% in Fiscal 2023 in terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket (IAM), on a combined basis.

The product range of the company includes AB systems, aluminium lightweight precision (ALP), wheel assembly to 2W OEMs and safety control cables (SCC). The company operates in India as well as overseas.

The firm reported a net profit of Rs 34.83 crore and net sales of Rs 656.50 crore for the three months ended on 30 June 2023.