ASK Automotive Ltd Launches IPO, Receives Subscriptions for Over 0.15 Times

7 Nov 2023 , 12:10 PM

The initial public offering (IPO) of ASK Automotive Ltd debuted in the primary market today, available for bidding until November 9, 2023, with a price band set at Rs 268 to Rs 282 per share. The automotive company aims to raise Rs 834 crore through the issuance of 29,571,390 fresh shares. Click here to subscribe the IPO.

By 12:22 PM on the first day of bidding, the public issue achieved a subscription rate of 0.15 times, with the retail portion being subscribed 0.26 times and the NII portion at 0.10 times.

ASK Automotive specializes in supplying safety systems and critical engineering solutions, possessing in-house capabilities for designing, developing, and manufacturing. Notably, it holds the position of being the largest manufacturer of brake-shoe and advanced braking systems for two-wheelers in India, capturing a 50% market share in FY2023.

The company showcased significant growth between FY21 and FY23, evident in its revenue from operations, which saw a Compound Annual Growth Rate (CAGR) of 28.64%. Additionally, its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) demonstrated a CAGR of 13.11% during the same period.

In the quarter ended June 2023, ASK Automotive reported a revenue of Rs 656 crore, marking an 8% year-on-year increase, with profits soaring by 55% to Rs 35 crore. This favorable performance indicates the company’s growth trajectory and financial health.