ASK Automotive IPO: A Promising Investment Opportunity

The ASK Automotive IPO is creating quite a buzz in the investment world. This blog post provides you with all the essential details about this book-built issue, allowing you to make an informed decision. Let’s dive into the specifics!

IPO Overview:

The ASK Automotive IPO is valued at Rs 834.00 crores, comprising a fresh issue of Rs 834.00 crores and an offer for sale of 2.96 crore shares. The subscription period for this IPO runs from November 7, 2023, to November 9, 2023.

Price Band:

The IPO is priced between ₹268 to ₹282 per share, with a minimum lot size of 53 shares. Retail investors can get started with an investment of ₹14,946.

Investor Categories:

For sNII (Non-Institutional Investors), the minimum investment is set at 14 lots (742 shares), amounting to ₹209,244. On the other hand, bNII (Qualified Institutional Buyers) need to invest in 67 lots (3,551 shares), totaling ₹1,001,382.

Key Players:

The ASK Automotive IPO is managed by Jm Financial Limited, Axis Capital Limited, ICICI Securities Limited, and Iifl Securities Ltd. Link Intime India Private Ltd is the registrar for the issue.

Lot Size:

Investors can bid for a minimum of 53 shares and in multiples thereof. Here’s a breakdown of minimum and maximum investments for retail and HNI investors.

Promoter Information:

The company is promoted by Kuldip Singh Rathee and Vijay Rathee.

About ASK Automotive Limited:

Established in 1988, ASK Automotive Limited specializes in Advance Braking Systems for two-wheelers in India. Their product range includes AB systems, aluminum lightweight precision (ALP), wheel assembly for 2W OEMs, and safety control cables (SCC). With 15 manufacturing units across five states in India, they supply to major Original Equipment Manufacturers and the independent aftermarket.

Financial Performance:

ASK Automotive Limited witnessed a remarkable 26.78% increase in revenue and a 48.75% rise in profit after tax (PAT) between the financial years ending on March 31, 2023, and March 31, 2022.

Key Performance Indicator:

The ASK Automotive IPO boasts a market cap of Rs 5559 Cr and a P/E (Price-to-Earnings ratio) of 45.63.

Objects of the Issue:

Notably, the company will not receive any proceeds from the IPO; all the Offer Proceeds will go to the Selling Shareholders.

Investment Review:

According to Dilip Davda, ASK Automotive Limited is the largest manufacturer of brake-shoes and advanced braking systems in India, catering to 2W giants like HeroMotocorp, TVS, and Bajaj. While it faced some challenges in FY22 due to the global pandemic, the company has displayed consistent growth in its top-line. Investors looking for medium to long-term rewards might find this IPO worth considering.

Conclusion:

The ASK Automotive IPO presents a compelling investment opportunity in the two-wheeler braking systems sector. With a strong track record and a bright future, it’s definitely an IPO to keep an eye on. Make sure to do your research and consult with financial experts before making any investment decisions.