ASK Automotive IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHPLast Updated Date: Nov 14, 2023
The ASK Automotive IPO presents an exciting opportunity for investors looking to capitalize on the company’s strong market position in the automotive industry.
With a dominant share in the two-wheeler brake systems sector and a diverse product portfolio, ASK Automotive exhibits stability and growth potential.
This comprehensive review covers key aspects such as Grey Market Premium (GMP), subscription status, allotment, and more.
While there are considerations regarding the ASK Automotive IPO structure and potential risks, diligent analysis of the company’s financials and market conditions can help investors make informed decisions.
|Face Value||Rs 2|
|Price Band||Rs 268 to Rs 282|
|Listing At||BSE, NSE|
|Min. Order Quantity||53 Shares|
|Listing Date||November 20, 2023|
|Offer for Sale||Rs NA Crore|
|Fresh Issue||Rs 834.00 Crore|
|IPO Size||Rs 834.00 Crore|
ASK Automotive IPO Overview
Ask Automotive Ltd has filed a Red Herring Prospectus (DRHP) for its IPO, aiming to raise funds through an equity share capital offer.
The ASK Automotive IPO comprises an ‘Offer for Sale’ of up to 29,571,390 shares. JM Financial, Axis Capital, ICICI Securities, and IIFL Securities will serve as lead bankers. The company has not disclosed the issue size and other details.
The fundraising will be entirely through an offer-for-sale (OFS) of equity shares, with promoters Kuldip Singh Rathee and Vijay Rathee selling up to 2,06,99,973 and 88,71,417 shares, respectively. Further updates will be provided as the IPO progresses.
ASK Automotive IPO Important Dates
|IPO Opening Date||November 7, 2023|
|IPO Closing Date||November 9, 2023|
|Basis of Allotment Finalization||November 15, 2023|
|Refunds Initiation||November 16, 2023|
|Credit of Shares to Demat Account||November 17, 2023|
|Share Listing Date||November 20, 2023|
At present, the ASK Automotive IPO dates have not been revealed. The company will provide updates regarding these dates in due course. Investors should keep an eye out for several key dates during the IPO process.
These include the opening and closing dates, which will mark the period during which investors can subscribe to the IPO.
Additionally, there will be an allotment date when the shares will be allocated to the investors and a listing date when the shares will be officially listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
As soon as the company discloses the important dates, this information will be promptly updated here for your reference.
ASK Automotive IPO Price, Size, Share Offerings
|Face Value||Rs 2|
|Price Band||Rs 268 to Rs 282|
|Offer for Sale||Rs NA Crore|
|Fresh Issue||Rs 834.00 Crore|
|IPO Size||Rs 834.00 Crore|
The ASK Automotive IPO size consists of a fresh issue of shares and an offer for sale. The offer for sale includes up to 29,571,390 equity shares, with Kuldip Singh Rathee and Vijay Rathee, both promoters of the company, as the selling shareholders.
The eligibility and share reservation details among Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) are not specified in the given information.
The selling shareholders are offering their equity shares with a weighted average cost of acquisition of Rs 0.02 per share.
It is important to note that as this is the company’s first public issue, there is no formal market for the equity shares, and the floor price, cap price, and ASK Automotive IPO price band should not be considered indicative of the market price post-listing. The trading activity and price after listing cannot be assured.
ASK Automotive IPO Grey Market Premium
|Date||GMP (Rs.)||Kostak Rate (Rs.)||Subject to Sauda (Rs.)|
|14 Nov 2023||Rs 30||NA||NA|
|13 Nov 2023||Rs 30||NA||NA|
|12 Nov 2023||Rs 50||NA||NA|
|09 Nov 2023||Rs 50||NA||NA|
|08 Nov 2023||Rs 45||NA||NA|
|07 Nov 2023||Rs 35||NA||NA|
|06 Nov 2023||Rs 40||NA||NA|
The Grey Market Premium refers to the premium or discount at which a company’s shares are traded in the unofficial, over-the-counter market before they are officially listed on the stock exchange.
It is typically determined by market demand and investor sentiment. The ASK Automotive IPO GMP is now disclosed.
Currently, there is no premium on the share price in the grey market. However, if the shares perform well in the grey market and experience a high premium rate, it would indicate strong demand for the ASK Automotive IPO.
This could suggest a positive outlook for investing in the company. It is important to note that the grey market premium is subject to market forces and can fluctuate over time.
ASK Automotive IPO Subscription Status
|Day / Date||QIB||NII||RII||Total Subscription|
|1st Day – 7th Nov||0.03x||0.41x||0.57x||0.39x|
|2nd Day – 8th Nov||0.06x||2.28x||1.70x||1.35x|
|3rd Day – 9th Nov||142.41x||35.47x||5.70x||51.14x|
|Shares Offered or Net Issue||5,914,278||4,435,709||10,349,987||29,571,390|
The ASK Automotive IPO Subscription status indicates the level of bidding activity on the shares when the offering becomes available.
In the case of the ASK Automotive IPO, the subscription status is currently active, meaning there is no bidding or subscription taking place at the moment.
However, once the IPO becomes active, you can obtain real-time information on the subscription status of the ASK Automotive IPO by following the provided link.
ASK Automotive IPO Allotment Status
The allotment status for the ASK Automotive IPO is currently unavailable as the company is in the process of filing draft papers with SEBI (Securities and Exchange Board of India) to raise funds.
The IPO process involves the submission of necessary documents, obtaining regulatory approvals, and conducting the bidding period.
Upon completion of these steps, the allotment status will be determined and made available to the public.
Interested individuals can stay informed about the ASK Automotive IPO Allotment status by regularly visiting the official website or accessing the designated link provided by the company.
ASK Automotive IPO Live Performance
As investors eagerly await updates on the IPO dates and ASK Automotive IPO performance, it is crucial to have reliable sources of information readily available.
One such source is a dedicated link where investors can directly monitor the live performance of the ASK Automotive IPO listing.
This platform provides real-time updates on the ASK Automotive IPO share price of opening and closing, trading volumes, and other relevant data.
By accessing this link, investors can stay informed about the latest developments and make informed decisions regarding their investment in ASK Automotive.
Subscribe to ASK Automotive IPO – Open Free Demat Account Now!
Latest ASK Automotive IPO News
The much-anticipated IPO of ASK Automotive has been creating a buzz in the financial realm. With investors eagerly awaiting further updates, there is a lot more to unfold regarding the ASK Automotive IPO news, including key dates and significant developments.
As this news continues to gain momentum and market attention, it is essential to closely follow reputable sources and financial platforms for the latest news and updates on the ASK Automotive IPO.
By staying tuned to reliable information, investors can stay informed and seize potential opportunities.
ASK Automotive – Company Review
ASK Automotive is a leading manufacturer and supplier of automotive components, specializing in brake systems.
Thus, ASK Automotive Private Limited (AAPL) is an Indian non-government company that has been in operation for over 35 years. It was incorporated on January 18, 1988, with its registered office located in Central Delhi, India.
The primary focus of ASK Automotive is the manufacturing of automotive components for two-wheelers. It is an active company, and its annual returns and financial statements have been filed up until March 31, 2022.
It operates as a company limited by shares, with an authorized capital of Rs 45.00 crore and a paid-up capital of Rs 40.18 crore.
According to the records of the Ministry of Corporate Affairs (MCA), the firm currently has active open charges amounting to Rs 300.00 crore. It has successfully closed loans totalling Rs 623.12 crores.
It has established itself as a trusted name in the automotive industry, catering to both domestic and international markets.
The company offers a wide range of products including brake shoes, brake linings, disc pads, clutch facings, and other related components.
These products find applications in various segments such as passenger cars, commercial vehicles, two-wheelers, and off-highway vehicles.
With a strong emphasis on quality, it has implemented robust manufacturing processes and adheres to international standards.
The company’s state-of-the-art manufacturing facilities are equipped with advanced machinery and technology to ensure precision and efficiency in production.
ASK Automotive’s commitment to innovation and continuous improvement has earned them a reputation for delivering high-performance products.
They focus on research and development activities to stay at the forefront of technological advancements in the automotive industry.
Products or Services
Following are the products of ASK Automotive Limited.
- Brakes & Braking Systems
- Truck Brake Parts
- Clutch, Clutch Parts & Accessories
- Clutch Components
- Motorcycle Brake Parts
- Car Brake Parts
- Brake Shoe
- Die Casting & Investment Castings
- Die Casting
- Brake Parts
Promoters and Holding
Promoters of ASK Automotive:
- Kuldip Singh Rathee (Managing Director)
- Vijay Rathee (Director)
- Kuldip Singh Rathee: Up to 20,699,973 Equity Shares
- Vijay Rathee: Up to 8,871,417 Equity Shares
Is ASK Automotive Good for Investment?
ASK Automotive holds a dominant market share of around 50% in India’s two-wheeler brake-shoe and advanced braking systems manufacturing sector in the fiscal year 2022.
This market position offers stability and brand recognition, making it an attractive prospect for investors.
The company’s product portfolio is diversified, encompassing aluminium lightweight precision solutions, wheel assembly for two-wheeler OEMs, and safety control cable products. This diversification mitigates risks associated with fluctuations in specific segments, enhancing ASK Automotive’s resilience.
The company boasts a strong client base, serving renowned companies such as TVS Motor Company Ltd, Hero MotoCorp, Greaves Electric Mobility, and Bajaj Auto. This indicates solid and dependable business relationships, contributing to the company’s credibility.
However, it is important to note that the IPO proceeds solely benefit the selling shareholders, providing no fresh capital injection for ASK Automotive. This limitation may impact the company’s ability to fund future expansion or reduce debt.
Opportunities lie in the growing electric vehicle market, as ASK Automotive specializes in safety systems and critical engineering solutions for both EV and internal combustion engine OEMs.
Geographical expansion is also possible, with 15 manufacturing facilities across India and plans for further growth. Nevertheless, ASK Automotive faces regulatory risks and intense competition in the automotive components industry.
Technological advancements, cost-competitiveness, and product differentiation strategies by competitors pose threats to the company’s market position.
Economic cycles also present risks, as a slowdown in the industry could reduce demand for vehicles and auto components.
Overall, ASK Automotive’s strong market position, diversified product portfolio, and solid client base create a foundation for growth specifically with the ASK Automotive IPO.
ASK Automotive Financial Statements
|Amount (in INR & Million)|
|Profit After Tax||
ASK Automotive Limited had a successful financial year ending on March 31, 2022, which can have a positive impact on the ASK Automotive IPO.
The company’s revenue exceeded INR 500 crore, while its net worth increased by 2.43%. However, the EBITDA witnessed a decrease of -8.10%.
Total assets grew by 10.27%, but liabilities increased significantly by 36.89%. The debt/equity ratio was 0.10, indicating a low level of debt.
The company achieved a return on equity (ROE) of 13.33%. Current assets and liabilities resulted in a current ratio of 1.10, with trade receivables increasing by 25.02% and trade payables increasing by 19.70%.
Overall, ASK Automotive demonstrated strong financial performance with increased revenue, net worth, and total assets, despite a decrease in EBITDA and a significant increase in liabilities.
|Earnings per Equity Share (in Million)|
|Basic & Diluted||
ASK Automotive IPO Review
ASK Automotive IPO presents an attractive opportunity for investors. With a strong market share in two-wheeler braking systems and a diversified product portfolio, the company demonstrates stability.
It serves reputable clients and has shown positive financial growth, although there are slight concerns regarding EBITDA and increased liabilities.
Despite these considerations, ASK Automotive has opportunities in the growing electric vehicle market and potential geographical expansion. Potential investors should carefully evaluate these factors before making investment decisions.
ASK Automotive IPO Details
Here are few more details you need to know before investing in ASK Automotive IPO –
ASK Automotive IPO Issue Object
Thus ASK Automotive has proposed diverse objectives for making the IPO offer and some of the objectives are:
- To carry out the Offer for Sale of up to 29,571,390 Equity Shares by the Promoter Selling Shareholders aggregating up to Rs [●] million; and
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
ASK Automotive IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Well established manufacturer of safety systems and critical engineering solutions for some of India’s largest OEMs in an industry with high entry barriers;
- Robust production model driven by research and development (“R&D”) and design with an emphasis on: (i) advanced material knowledge to customize systems and products based on customer specifications and (ii) engineering lighter precision products;
- Technology and innovation-driven manufacturing process, with an extensive suite of systems and solutions for EV and ICE sectors;
- Long-standing customer relationships with both Indian and global OEM players;
- Financial and return metrics demonstrating growth and efficient use of capital; and
- Professional management and board.
Quantitative factors are:
|Basic & Diluted EPS||RONW (%)||NAV (Rs.)|
ASK Automotive IPO Lead Managers
Here are the list of Lead managers –
JM Financial Limited
- Axis Capital Limited
- ICICI Securities Limited
IIFL Securities Limited
ASK Automotive IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
C-101, 1stFloor, 247 Park L.B.S. Marg,
Vikhroli West Mumbai 400 083
Tel:+91 810 811 4949
Investor Grievance Email:firstname.lastname@example.org
Contact Person: Shanti Gopalkrishnan
SEBI Registration No:INR000004058
ASK Automotive IPO – Other Details
- Statutory Auditor – Walker Chandiok & Co, Chartered Accountants
- Legal Counsel to the Company – Shardul Amarchand Mangaldas & Co
- Bankers to the Company – HDFC Bank Limited, Kotak Mahindra Bank Limited, and Axis Bank Limited
ASK Automotive IPO Verdict by Stock Brokers
The firm exhibits stability and development potential with a solid market position in two-wheeler brake systems and a diverse product line. However, the IPO’s design favors the selling stockholders while not providing new funding for the business, which can restrict future growth.
Investors should carefully assess the financial performance, market environment, and regulatory risks of the firm in the automotive components sector. Analysis of the IPO specifics and thorough due diligence are essential. Overall, the ASK Automotive IPO seems appealing, but before choosing to join, investors must weigh the potential and dangers.
ASK Automotive IPO – Conclusion
To sum up, the ASK Automotive IPO offers a great opportunity for investors looking to profit from the company’s dominant market position and future expansion in the automotive sector. ASK Automotive demonstrates stability and resiliency with a strong market share in the two-wheeler braking systems industry and a broad range of products.
Even if the IPO structure and possible dangers must be taken into account, investors may make wise choices by carefully examining the company’s financials, the state of the market, and the prognosis for the sector.
To take advantage of possible possibilities and carefully assess the risks involved, keep up with the most recent news and developments on the ASK Automotive IPO.
To Subscribe to ASK Automotive IPO – Open Demat Account Now!
ASK Automotive IPO Review FAQs
Check out the FAQs on ASK Automotive IPO –
What is the Issue Size of ASK Automotive IPO?
The Company is making an initial public offer of 29,571,390 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of ASK Automotive IPO?
The price band for this particular IPO ranges between Rs 268 to Rs 282. As far as the face value of the share is concerned, it is Rs.2 per share.
What is the ASK Automotive IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on November 7, 2023, while the closing date is set at November 9, 2023.
What is the ASK Automotive IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on November 15, 2023, refund initiation is on November 16, 2023, credit of shares is on November 17, 2023, and share listing date is on November 20, 2023.
What is the ASK Automotive IPO Listing Date?
Shares of this company shall be listed in the exchanges on November 20, 2023. The date, when the listing would be done, is stagnant on November 20, 2023.
Who is the Registrar of ASK Automotive IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of ASK Automotive IPO?
Here are the promoters of this IPO – KULDIP SINGH RATHEE AND VIJAY RATHEE. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of ASK Automotive IPO?
They have obtained the GMP of this IPO and it is Rs.30. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is ASK Automotive IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of ASK Automotive Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2023 in Million is 1,229.53, 2022 is 826.59, 2021 is 1,062.01. PAT from Jun 2023 is 348.29.
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