ASK Automotive up 3% on Day 2 after Goldman Sachs fund buys Rs 72-crore stake

The counter closed higher by 10 percent after listing at an 8 percent premium on November 15.

ASK Automotive gained 2.7 percent in the early trade on November 16, clocking gains on the second straight day of trading on the bourses.

Goldman Sachs India Equity Portfolio bought 23.2 lakh equity shares in ASK Automotive, which amounts to 1.18 percent of paid-up equity, via an open market transaction at an average price of Rs 310.05 a share adding to Rs 71.95 crore.

As of 9.23 am, ASK Automotive was trading at Rs 315.8 apiece on the NSE, up 1.84 percent from the closing price in the previous session.

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ASK Automotive debuted on the bourses on November 15. On BSE, the stock opened at Rs 304.9 and settled at Rs 310.2 against the issue price of Rs 282, closing higher by 10 percent after listing at an 8 percent premium.

The offer received a good response from investors with the issue getting booked 51.14 times. Retail investors bid 5.7 times and non-institutional investors (NII) 35.47 times the portions set aside for them. QIBs picked 142.41 times their allotted quota.

Also Read | ASK Automotive closes with 10% rally on debut

The promoters of the company are Kuldip Singh Rathee and Vijay Rathee.

ASK Automotive is the largest manufacturer of brake-shoe and advanced braking systems for two-wheelers in India with a market share of approximately 50 percent in Fiscal 2023 in terms of production volume for OEM and the branded independent aftermarket (IAM), on a combined basis.

The company recorded a 48.8 percent on-year growth in net profit at Rs 122.9 crore for the year ended March FY23, and the revenue from operations during the same period jumped 27 percent to Rs 2,555.17 crore.