The public issue of ASK Automotive recorded a decent 38 percent subscription on bidding debut on November 7, as investors picked up 78.51 lakh equity shares against an issue size of 2.07 crore.
Retail investors and high net-worth individuals have begun bidding for the offer on the debut, buying 56 percent shares and 41 percent shares of the portion set aside for them, while qualified institutional buyers subscribed for 3 percent shares of the reserved portion.
The auto ancillary company has reserved half of the issue size for qualified institutional buyers and 15 percent for high net-worth individuals (non-institutional investors). The remaining 35 percent is reserved for retail investors.
The Rs 834-crore public issue comprises only an offer-for-sale of 2.95 crore equity shares by the Rathee family, and there is no fresh issue portion in the offer. Hence, the entire issue proceeds will go to the promoters and the company will not get any money from the offer.
Also read: ASK Automotive floats Rs 834-crore IPO, brokerages offer bullish views
The price band for the issue, which closes on November 9, has been fixed at Rs 268-282 per share.
ASK Automotive, which specialises in advanced braking systems for the two-wheeler segment, has raised Rs 250 crore from anchor investors like Morgan Stanley, Neuberger Berman, Goldman Sachs, Copthall Mauritius Investment, BNP Paribas Arbitrage, Societe Generale, ICICI Prudential Mutual Fund, SBI Life Insurance Company, Tata Mutual Fund, ICICI Prudential Life Insurance Company, and Abakkus Diversified Alpha Fund.
The Gurugram-based company runs its business through its 15 manufacturing facilities across five states.
Also read Moneycontrol's Exclusive Note on ASK Automotive IPO
It is the largest manufacturer of brakeshoe and advanced braking (AB) systems for two-wheelers in India. It also specialises in aluminium light-weighting precision solutions, wheel assembly, and safety control cables products, serving both the automotive and non-automotive sectors.
In the grey market, its shares received a decent response from investors, available at a 12 percent premium over the upper price band, analysts on anonymity said. The grey market is an unofficial platform where IPO shares can be bought and sold till the listing.
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