ASK Automotive Ltd. has got a decent listing in the market. This share is listed on BSE at Rs 304.9 with a premium of 8.12%. Whereas on NSE it is listed at Rs 303.3 with a premium of 7.55%. The issue price of IPO was Rs 282.
Bumper response to IPO
This IPO of Rs 834 crore was subscribed 51.14 times on its last day. The maximum subscription was received from institutional investors, this portion was filled 142.41 times. After this, the share of non-institutional investors was subscribed 35.47 times and the share of retail investors was subscribed 5.70 times.
This IPO was completely OFS, in which 2.95 crore (2,95,71,390) shares were put up for sale. Promoters Kuldeep Singh Rathi and Vijay Rathi had put their shares up for sale. Since it was OFS, new shares were not issued. After the issue, promoters’ shareholding will reduce to around 85%. Since the issue of ASK Automotive is purely an OFS, the entire proceeds from the issue will go to the selling shareholders and the company will not receive any funds from the issue.
ASK Automotive has already raised Rs 250 crore from anchor investors before the IPO. The company has allotted 88.71 lakh shares to 25 funds at the upper price band of Rs 282 per share. At this price the amount raised from anchor investors is Rs 250.17 crore.
Company Business
ASK Automotive Company is an auto accessory company, that is, it makes parts for auto companies. It is one of the largest manufacturers in the country who make brake shoes and advanced braking systems for 2-wheelers in India. According to the financial year 2022, their market share in India is around 50%.
The company provides safety systems and critical engineering solutions with in-house designing, developing and manufacturing capabilities. It makes powertrain agnostic, which ranges from electric vehicles to internal combustion engine original equipment manufacturers. The company has some big clients like TVS Motor Company, Hero MotoCorp, Greaves Electric Mobility and Bajaj Auto.
