ASK Automotive shares list at 8% premium at Rs 304 on BSE

15 Nov 2023 , 09:52 AM

ASK Automotive’s stock made a strong entry into the market, opening at an 8% premium on the bourses. The shares were listed at Rs 303.30, reflecting a 7.55% premium over the issue price of Rs 282. On the BSE, each share was priced at Rs 304.90, indicating an 8.12% premium.

Despite the entire offering being a 100% offer-for-sale by the Rathee family and a fully priced-in IPO, the response from investors was overwhelming, particularly from qualified institutional buyers. The demand was robust, with the IPO being oversubscribed 51.14 times, attracting bids for 105.85 crore shares against the initial offering of 2.06 crore shares. Retail investors bid 5.7 times, non-institutional investors (NII) bid 35.47 times their allocated portions, and qualified institutional buyers oversubscribed by an impressive 142.41 times. The company’s promoters are Kuldip Singh Rathee and Vijay Rathee.

The IPO, which had a price band of Rs 268-282 per share, was open for subscription from November 7 to November 9. The public issue successfully raised Rs 834 crore. However, since the offering consisted entirely of an offer-for-sale of 2.95 crore shares, the proceeds from the entire issue will go to the selling shareholders, and the company will not receive any funds from the IPO.

ASK Automotive holds the distinction of being the largest manufacturer of brake-shoe and advanced braking systems for two-wheelers in India. In Fiscal 2023, the company commanded a market share of approximately 50% in terms of production volume for OEM and the branded independent aftermarket (IAM), when considered on a combined basis.