ASK Automotive IPO subscribed 38%

Published on Nov 07, 2023 17:11

The initial public offer (IPO) of ASK Automotive received bids for 78,51,155 shares as against 2,06,99,974 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (7 November 2023). The issue was subscribed 0.38 times.

The issue opened for bidding on Tuesday (7 October 2023) and it will close on Thursday (9 November 2023). The price band of the IPO is fixed at Rs 268-282 per share. An investor can bid for a minimum of 53 equity shares and in multiples thereof.

The offer comprises 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 holds 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.