ASK Automotive shares recorded a 10 percent rally on listing day, November 15, which was attributed to the bullish sentiment that prevailed in the equity markets and robust IPO subscription numbers. The benchmark indices rallied more than 1 percent today.
The stock opened higher by 7.55 percent at Rs 303.3 and remained above Rs 300 mark throughout the session. The stock touched an intraday high of Rs 316.70 in the last hour of trade and finally settled at Rs 310.10 on the NSE, up 10 percent, while the closing price on the BSE was Rs 310.20.
In terms of volumes, ASK traded with a volume of 2.17 crore equity shares on the NSE and 14.35 lakh shares on the BSE.
Gurugram-based ASK Automotive, the leading player with more than 50 percent market share as a broken shoe and advanced braking systems manufacturer, launched its public issue last week and raised Rs 834 crore via offering.
The issue consisted of only an offer-for-sale (OFS) by the Rathee family. The price band for issue was Rs 268-282 per share.
Also read: Tata Tech IPO: Check likely price band, issue date, company financials, more
With 15 manufacturing facilities across five states in India, the company shares strong relations with all the top two-wheeler manufacturers in the country. It has a robust production model and a technology- and innovation-based manufacturing process. Financially, the company has shown strong growth in its top-line numbers, while its profitability has also been decent, Shivani Nyati, head of wealth at Swastika Investmart said.
Those who have a medium- to long-term perspective can also hold the stock with the given stop-loss, she advised.
Also read: IREDA sets Rs 30-32 price band for its IPO
The company has 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.
Even the June quarter earnings were positive with profit rising 54.8 percent year-on-year to Rs 34.83 crore, and revenue increasing 8.7 percent to Rs 656.5 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
