Auto ancillary firm ASK Automotive has raised ₹250.2 crore from anchor investors ahead of its initial public offering (IPO) which will open for subscription today. The Gurugram-based company has allotted 88,71,416 equity shares to 25 anchor investors, including 6 mutual funds, at the upper end of the IPO price band of ₹268-282 per share.

The marquee anchor investor who participated in the anchor book included  Morgan Stanley, Copthall Mauritius, Goldman Sachs, Societe General, BNP Paribas, LC Radiance Fund, Integrated Core Strategies, Turnaround Opportunities Fund, Bajaj Allianz, Abakkus, Edelweiss, 3P India, Canara Rebeco, ICICI Prudential Life, Tata Mutual Fund, Florida Retirement, Neuberger Bermann, NHIT Global, SBI Life, Nippon Life India, etc.

ASK Automotive, a manufacturer of advanced braking systems, aluminium lightweight precision, is looking to raise ₹833.91 crore by issuing 2,95,71,390 equity shares at the upper end of the price band. The three-day public issue will close on November 9, while shares are slated to be listed on the stock exchanges on November 20, 2023.

ASK Automotive IPO GMP for today or grey market premium is 40. This indicates that the listing price of ASK would be ₹322 (cap price + today's GMP), a premium of 14.18% over the issue price.

The lot size is 53 equity shares and in multiples thereafter. This means the minimum application amount for retail investors would be ₹14,946 for 1 lot, and a maximum of ₹194,298 for 13 lots.

 The IPO is completely an offer for sale by promoters Kuldip Singh Rathee and his wife, Vijay Rathee. Hence, the entire issue proceeds will go to promoters and the company will not receive any capital from this offer.

Kuldip Singh Rathee is the largest shareholder in the company with a 50.73% stake, followed by Vijay Rathee, who owns 39.47% shares in the company as of now. Kuldip’s sons Prashant Rathee and Aman Rathee hold 4.9% each in the company.

As per the offer document filed with the capital market regulator SEBI, the company has reserved up to half of the public issue size for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.

Established in 1988, ASK Automotive claims to be the largest manufacturer of brake-shoe and advanced braking systems for two-wheelers in India. The company dominates in this space with a 50% market share in the fiscal 2022 in terms of production volume for original equipment manufacturers (“OEMs”) and the branded independent aftermarket, on a combined basis, as per the CRISIL report.

The company’s product range includes AB systems, aluminium lightweight precision, wheel assembly for two-wheelers, and safety control cables. As of June 2023, the company has 15 manufacturing units spread across five states in India.

For the quarter ended June 2023, ASK reported profit after tax (PAT) of ₹34.83 crore, up 54.8% from ₹22.5 crore last fiscal. The revenue grew 8.7% to ₹657.55 crore as against ₹603.7 crore in the same period last year. For the financial year 2023, the company posted a 48.75% rise in PAT at ₹122.95 crore as compared to ₹82.66 in FY22. The revenue also increased by 26.78% to ₹2,566.28 crore from ₹2,024.26 crore as of March 31, 2022.

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