ASK Automotive IPO day 3: Issue subscribed 2.88 times so far

9 Nov 2023 , 11:44 AM

By the 11.50 AM of November 9, ASK Automotive’s IPO of Rs 834 crore had witnessed a robust subscription rate, reaching more than 2.88 times the offer size. The IPO had received bids for 5.97 crore shares against the issue size of 2.06 crore shares. Retail investors showed a strong interest by bidding 2.67 times, while non-institutional investors (NII) demonstrated significant interest, bidding 7.12 times the portions allocated to them. However, the qualified institutional buyers (QIB) only subscribed to 0.07 times of their allotted quota. Click here to subscribe the IPO.

The entire issue comprises an offer-for-sale of 2.95 crore shares, signifying that the proceeds will entirely benefit the selling shareholders, namely the promoters Kuldip Singh Rathee and Vijay Rathee.

The price band for the subscription, which opened on November 7, was set at Rs 268-282 per share. Prior to the IPO, the company successfully secured Rs 250.20 crore from 25 anchor investors, including reputed names like Morgan Stanley, Goldman Sachs, Neuberger Berman, Florida Retirement System, Integrated Core Strategies, BNP Paribas Arbitrage, Societe Generale, and Copthall Mauritius Investment.

In FY23, ASK Automotive recorded an impressive year-on-year revenue growth of 27 percent, reaching Rs 2,555 crore. The profit after tax surged to Rs 123 crore from Rs 82.65 crore in FY22. Notably, the company’s adjusted net debt nearly doubled from Rs 158.49 crore in FY22 to Rs 315.78 crore in FY23.