ASK Automotive Raises Rs 250.2 Crore via Anchor Book Ahead of IPO

6 Nov 2023 , 09:51 PM

Auto ancillary firm ASK Automotive raised Rs 250.2 crore through the sale of shares via an anchor book on November 6, a day before the launch of its public issue.

The anchor book saw the participation of 25 investors, including prominent names such as Morgan Stanley, Goldman Sachs, Neuberger Berman, Florida Retirement System, Integrated Core Strategies, BNP Paribas Arbitrage, Societe Generale, and Copthall Mauritius Investment. Domestic institutions such as Nippon Life India, ICICI Prudential Mutual Fund, SBI Life Insurance Company, Tata Mutual Fund, ICICI Prudential Life Insurance Company, Canara Robeco Mutual Fund, Abakkus Diversified Alpha Fund, Edelweiss Trusteeship, and Bajaj Allianz Life Insurance Company also secured stakes in the company.

According to ASK Automotive’s filing to the exchanges, the company allocated 88,71,416 equity shares to anchor investors at Rs 282 per equity share. It mentioned that five mutual funds applied through a total of six schemes.

Specializing in advanced braking systems for the two-wheeler segment, ASK Automotive is set to open its Rs 834-crore initial public offering on November 7, with a price band set between Rs 268-282 per share. The IPO, consisting solely of an offer-for-sale by promoters Kuldip Singh Rathee and Vijay Rathee, will not yield any capital to the company. The proceeds, excluding IPO expenses, will be received by the Rathee family.

Operating 15 manufacturing facilities across five states in India, ASK Automotive is the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India. The company specializes in aluminum light-weighting precision solutions, wheel assembly, and safety control cables products, catering to both the automotive and non-automotive sectors.