ASK Automotive lists at 8% premium in a buoyant market

ASK Automotive listing: Advance braking systems manufacturer ASK Automotive's shares made a decent entry into the listed space on Wednesday. The scrip debuted at Rs 304.9 apiece on the BSE stock exchange, a premium of Rs 22.9, or 8.1 per cent over the upper end of the price range of the company's IPO.

ASK Automotive began its journey as a listed stock at Rs 303.3 apiece on the NSE, a premium of Rs 21.3 or 7.6 per cent.

The company's IPO was a complete offer for sale (OFS) of 2,95,71,390 shares worth an estimated Rs 834 crore.

The public issue opened on November 7 and concluded on November 9. Promoters Kuldip Singh Rathee and Vijay Rathee offloaded their stake in the company.

Since it was an OFS, the proceeds from the offer did not go to the company but to the selling shareholders.

The issue of the Gurugram-based advanced braking systems manufacturer was subscribed 51.02 times on the final bidding day. 

The portion reserved for qualified institutional buyers was subscribed 142.41 times, while the non-institutional or high-net-worth investors' segment was subscribed 35.47 times. The retail portion was subscribed 5.7 times.

Before the launch, Zee Business Managing Editor Anil Singhvi has advised investors to consider the issue for Subscription for a long term given the company’s huge 50 per cent market share and experienced management team.

About the company 

Gurugram-based ASK Automotive is one of the largest manufacturers of brake-shoe and advanced braking systems for two-wheelers in India with a market share of approximately 50 per cent in the fiscal year 2022. The firm supplies safety systems and critical engineering solutions with in-house designing, developing, and manufacturing capabilities. Its offerings are powertrain agnostic, catering to electric vehicles (EV) as well as internal combustion engine original equipment manufacturers. The company has clients including TVS Motor Company Ltd, Hero MotoCorp, Greaves Electric Mobility, and Bajaj Auto.