ASK Automotive IPO Details Announced

The initial public offering (IPO) of ASK Automotive is set to open for public subscription on November 7, marking a significant milestone for the company. Let’s explore the key details and insights regarding this upcoming IPO.

IPO Timeline

The three-day IPO will run from November 7 to November 9, providing investors with an opportunity to participate in ASK Automotive’s share sale. Prior to the public offering, bidding for anchor investors will commence on November 6, as outlined in the red herring prospectus (RHP) filed recently.

Offer Details

The IPO is structured as an offer for sale (OFS), involving the sale of 2,95,71,390 equity shares by promoters Kuldip Singh Rathee and Vijay Rathee. Kuldip currently holds a 41.33 per cent stake in ASK Automotive, while Vijay owns a 32.3 per cent stake in the company.

Given that this IPO is entirely an OFS, the proceeds will directly benefit the selling shareholders, with no funds allocated to the company from this offering.

Company Overview

Headquartered in Gurugram, ASK Automotive is a leading manufacturer specializing in brake-shoe and advanced braking (AB) systems for two-wheelers in India. The company commands a substantial market share, approximately 50 per cent in fiscal 2022, showcasing its strong position in the industry.

ASK Automotive is known for supplying safety systems and critical engineering solutions, leveraging its in-house capabilities for designing, developing, and manufacturing. Notably, its product portfolio caters to a wide spectrum, including electric vehicles (EV) and internal combustion engine original equipment manufacturers.

Clientele and Market Presence

The company boasts an impressive client base that includes renowned names like TVS Motor Company Ltd, Hero MotoCorp, Greaves Electric Mobility, and Bajaj Auto, highlighting its credibility and industry standing.

Lead Managers and Listing

The book-running lead managers for the IPO are JM Financial Ltd, Axis Capital Ltd, ICICI Securities Ltd, and IIFL Securities Ltd. Following the IPO, the equity shares of ASK Automotive are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The ASK Automotive IPO presents investors with an opportunity to participate in the growth story of a prominent player in the automotive safety solutions segment, backed by a strong market position and notable client relationships.