ASK Automotive IPO to open on Nov 7 without any fresh issue component

ASK Automotive IPO opens on November 7

Auto ancillary company ASK Automotive has decided to float its public issue on November 7. The price band for the offer will be disclosed over the next few days.

The offer for public will close on November 9, while the anchor book, a part of qualified institutional buyers, will open for a day on November 6.

The initial public offering of 2,95,71,390 equity shares consists of only an offer-for-sale by promoters Kuldip Singh Rathee and Vijay Rathee. As there is no fresh issue component, the entire issue proceeds, excluding the IPO expenses, will be received by the selling shareholders.

ASK Automotive is the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India with a market share of approximately 50 percent in FY23 in terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket (IAM).

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It also offers aluminium light-weighting precision solutions, wheel assembly, and SCC products to two wheelers, three wheelers, passenger vehicles, commercial vehicles.

With 15 manufacturing facilities across five states in India, the company has long-standing relationships with top six two-wheeler makers Hero MotoCorp, Honda Motorcycle and Scooter India, Bajaj Auto, India Yamaha Motor, TVS Motor, and Suzuki Motorcycle India.

The Haryana-based company has recorded net profit at Rs 122.9 crore for the year ended March FY23, increasing from Rs 82.6 crore in previous year. During the same period, revenue from operations jumped to Rs 2,555.17 crore, from Rs 2,013 crore.

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Net profit for the quarter ended June FY24 has surged to Rs 34.83 crore, from Rs 22.5 crore last fiscal, and revenue during the same period increased to Rs 656.5 crore from Rs 603.7 crore.

After closing the issue on November 9, the finalisation of basis of allotment of IPO shares will take place by November 15 and the equity shares will be credited to demat accounts of successful investors by November 17.

ASK Automotive will debut on the BSE and NSE, on November 20, as per the IPO schedule.

The company received approval from the Sebi to go ahead with the IPO plans in October. The book-running lead managers to the issue are JM Financial, Axis Capital, ICICI Securities, and IIFL Securities.

This will be the third public issue opening in November, after ESAF Small Finance Bank,and Protean eGov Technologies.