The initial public offering (IPO) of ASK Automotive, which launched on November 7, has seen a remarkable response. By November 8, the IPO was subscribed 1.34 times, with the Non-Institutional Investors' category witnessing a subscription of 5.73 times. The Retail Individual Investors (RIIs) quota was filled 2.48 times, while Qualified Institutional Buyers (QIBs) lagged behind at 0.07 per cent. As of November 9, the IPO was subscribed an impressive 2.49 times, with over five crore shares bid against two crore on offer.
The company sought to raise ₹834 crore by offering nearly three crore shares via an offer-for-sale (OFS) by promoters Kuldip Singh Rathee and Vijay Rathee. All proceeds from the IPO will be directed towards shareholders divesting their shares. The shares were offered at a price range of ₹268-282 per share with a minimum lot size of 53 shares, requiring a minimum investment of Rs 14,946 by retail investors.
Unlisted shares of ASK Automotive were trading Rs 50 higher in the grey market due to the grey market premium, indicating a potential listing gain of about 17.73 per cent.
Prior to the IPO, ASK Automotive secured ₹250.20 crore from 25 anchor investors, including Morgan Stanley and Goldman Sachs. The company is known for its in-house designing, developing, and manufacturing capabilities for advanced braking systems. Its client portfolio boasts some big names in the industry such as TVS Motor Company Ltd, Hero MotoCorp, Bajaj Auto, and Greaves Electric Mobility.
ASK Automotive reported strong financial performance in FY23 with revenue reaching ₹2,555 crore, marking a growth of 27%. Its profit after tax in the same period stood at ₹123 crore (INR100 crore = approx. USD12 million). Analysts have suggested subscribing to the IPO given ASK Automotive's robust financials, expansion plans, fair valuation, and potential benefits from the ongoing electric vehicle revolution.
The IPO is managed by JM Financial Ltd, Axis Capital (NYSE:AXS) Ltd, ICICI Securities Ltd and IIFL Securities Ltd and is proposed to be listed on BSE and NSE.
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