ASK Automotive IPO Subscribed 1.34 Times On Day 2

The initial public offering of ASK Automotive Ltd. opened for public subscription on Tuesday. The three-day issue, priced between Rs 268 and Rs 282 per share, will conclude on Nov. 9. The IPO was subscribed 38% on day 1.

The Rs 834-crore initial share sale comprises entirely of an offer for sale of up to 2.95 crore (2,95,71,390) equity shares by promoters Kuldip Singh Rathee and Vijay Rathee. There is no fresh issue segment in the IPO. After the issue, the promoters' shareholding will reduce to about 85%.

Since the issue of ASK Automotive is completely an OFS, the entire proceeds will go to the selling shareholders and the company will not receive any funds from the issue.

Gurugram-based ASK Automotive is a manufacturer of brake-shoe and advanced braking systems for two-wheelers in India, with a market share of approximately 50% in FY23, in terms of production volume for original equipment manufacturers and the branded independent aftermarket.

On the financial front, the company reported a consolidated turnover of Rs 2,555 crore for FY23, an increase from Rs 2,013 crore in FY22. Its net profit rose to Rs 123 crore from Rs 83 crore.

The IPO has been subscribed 1.34 times, as of 5 p.m. on Wednesday.

• Institutional investors: 0.06 times or 6%

• Non-institutional investors: 2.27 times

• Retail investors: 1.68 times