ASK Automotive IPO to Open on November 7, Sets IPO Price Band at Rs 268-282 per share

2 Nov 2023 , 10:44 AM

ASK Automotive is looking to raise capital through an offer-for-sale by its promoters Kuldip Singh Rathee and Vijay Rathee. Here’s a breakdown and summary of the key points regarding ASK Automotive and its upcoming IPO:

ASK Automotive IPO Details:

1. Company Profile: ASK Automotive specializes in advanced braking systems for the two-wheeler segment and is the largest manufacturer of brake-shoe and advanced braking systems in India.
2. IPO Schedule:
   • IPO Dates: November 7 to November 9 (for public), November 6 (for anchor book), with listing on November 20.
   • Price Band: Rs 268-282 per share.
   • Basis of Allotment: Expected by November 15.
   • Share Crediting: Expected by November 17.
3. Issue Details:
   • Type: Only an offer-for-sale by promoters Kuldip Singh Rathee and Vijay Rathee, no fresh issue.
   • IPO Size: 2,95,71,390 equity shares.
4. Allocation Breakdown:
   • Qualified Institutional Buyers (QIBs): 50% of the issue.
   • High Net Worth Individuals (HNIs): 15% of the issue.
   • Retail Investors: 35% of the issue.
5. Investment Parameters:
   • Bid Units: Minimum bid for 53 shares, multiples of 53 thereafter.
   • Retail Investment: Minimum Rs 14,946 (53 shares), maximum Rs 1,94,298 (689 shares).
6. Financial Performance: Recorded a net profit of Rs 122.9 crore for FY23, with an increase from Rs 82.6 crore in the previous year. Revenue increased to Rs 2,555.17 crore from Rs 2,013 crore during the same period.
7. Business Relationships: ASK Automotive has strong relationships with top two-wheeler manufacturers in India, such as Hero MotoCorp, Honda, Bajaj, Yamaha, TVS, and Suzuki.
8. Merchant Bankers: JM Financial, Axis Capital, ICICI Securities, and IIFL Capital Services are handling the IPO.

The company offers aluminium light-weighting precision solutions, wheel assembly, and SCC products to two wheelers, three wheelers, passenger vehicles, commercial vehicles.