ASK Automotive files pre-IPO papers with SEBI to raise funds

13 Jun 2023 , 02:32 PM

Gurugram-based ASK Automotive, manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India has filed draft red-herring prospectus (DRHP) with the markets regulator, SEBI to raise funds through IPO route.

As per DRHP, the issue will be completely an offer-for-sale (OFS) of 2,95,71,390 equity shares by promoters Kuldip Singh Rathee and Vijay Rathee.

As the initial public offer (IPO) is totally an offer for sale and the company will not receive any proceeds.

As of Fiscal 2022, the company stands as the leading producer of brake shoes and advanced braking (AB) systems for two-wheelers (2Ws) in India. It commands a market share of around 50% in terms of production volume, encompassing both original equipment manufacturers (OEMs) and the branded independent aftermarket.

ASK Automotive offers a comprehensive range of products including advanced braking (AB) systems, ALP solutions, wheel assemblies, and SCC (Steering, Clutch, and Chassis) products to original equipment manufacturers (OEMs) in the automotive sector. These products cater to the requirements of two-wheelers (2Ws), three-wheelers (3Ws), passenger vehicles (PVs), and commercial vehicles (CVs). Furthermore, ASK Automotive extends its product offerings beyond the automotive industry to serve non-automotive sectors such as all-terrain vehicles (ATVs), power tools, and outdoor equipment. This diversification strategy enables the company to expand its presence across multiple industries and underscores its commitment to meeting the diverse needs of a broad customer base.

Among its esteemed clientele, ASK Automotive counts top companies like TVS Motor Company Limited, Ather Energy, Hero MotoCorp, Greaves Electric Mobility, Bajaj Auto, and Revolt Intellicorp. These partnerships highlight the trust and preference that leading players in the industry place in ASK Automotive’s products and services.

JM Financial Ltd, Axis Capital Ltd, ICICI Securities and IIFL Capital Services are the lead managers to the issue. The company will list on BSE and NSE.