ASK Automotive IPO opens tomorrow: GMP, issue details, 10 key things to know

With internal design, development, and production skills, the company has been providing safety systems and crucial technical solutions for over thirty years. Powertrain agnostic products are offered by the company to OEMs of internal combustion engines (ICEs) and electric vehicles (EVs). As per the CRISIL Report, the company’s brand ‘ASK’ is acknowledged as the top brand in the 2W IAM with respect to production volume for Fiscal 2023 in India.

With effect from Fiscal 2022, the company has been providing commercial supplies to Indian 2W EV OEMs, including as TVS Motor Company Limited, Hero MotoCorp Limited, Ather Energy Private Limited, Greaves Electric Mobility Private Limited, Bajaj Auto Limited, and Revolt Intellicorp Private Limited. With each of the six top 2W OEM clients, the company has had an association for a minimum of 16+ years.

Also Read: ASK Automotive IPO opens on November 7, price band set at ₹268-282 per share

As of June 30, 2023, the company had fifteen manufacturing sites operating in five Indian states, the majority of which were thoughtfully situated near our OEM clients. In July 2023, the firm officially started conducting commercial manufacturing activities at our 16th manufacturing plant located in Bhiwadi, Rajasthan.

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The floor price is 134 times the face value of the equity shares and the cap price is 141 times the face value of the equity shares. The price to earning ratio based on diluted EPS for fiscal 2023 at the floor price is 43.37 times and at the cap price is 45.63 times.

As per red herring prospectus (RHP), the company’s comparable listed peer are Endurance Technologies Ltd (with P/E of 46.36), Uno Minda Ltd (with P/E of 52.59), Suprajit Engineering Ltd (with P/E of 35.49), and Bharat Forge Ltd (with P/E of 98.86).

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The promoters of the company are Kuldip Singh Rathee and Vijay Rathee.

Here are the 10 key things to know about ASK Automotive IPO:

ASK Automotive IPO date: ASK Automotive IPO opens for subscription on Tuesday, November 7, and closes on Thursday, November 9.

ASK Automotive IPO price band: ASK Automotive IPO price band has been fixed in the range of ₹268 to ₹282 per equity share of face value of ₹2.

ASK Automotive IPO lot size: ASK Automotive IPO lot size is 53 equity shares and in multiples of 53 equity shares thereafter.

Anchor investor: The allocation to anchor investors for ASK Automotive IPO is scheduled to take place on Monday, November 6.

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ASK Automotive IPO details: The total offer size of up to 29,571,390 equity shares with a face value of ₹2 each is being offered by Kuldip Singh Rathee up to 20,699,973 equity shares and Vijay Rathee (promoter selling stockholders) up to 8,871,417 equity shares.

Lead Manager and Registrar of ASK Automotive IPO: The offer’s book running lead managers are JM Financial Limited, Axis Capital Limited, ICICI Securities Limited, and IIFL Securities Limited. Link Intime India Private Ltd is the registrar for the issue.

ASK Automotive IPO reservation: ASK Automotive IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

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ASK Automotive IPO GMP today: ASK Automotive IPO GMP today or grey market premium is +36. This indicates ASK Automotive share price were trading at a premium of ₹36 in the grey market on Monday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ASK Automotive share price was indicated at ₹318 apiece, which is 12.77% higher than the IPO price of ₹282.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

ASK Automotive IPO review:“ASK Automotive IPO is the largest manufacturer in India for brake-shoe and advanced braking systems and is the most preferred partner for 2W companies like HeroMotocorp, TVS, Bajaj, etc. It marked consistent growth in its top lines for the reported periods. It suffered a minor setback for FY22 in bottom lines in line with general global trends following the pandemic. Based on FY24 annualized earnings, the issue appears fully priced. Investors may park funds for the medium to long-term rewards in this long race horse,” said Dilip Davda, the contributing editor at Chittorgarh.

ASK Automotive IPO financials: According to reports, ASK Automotive has reportedly reported a total income/net profit of ₹1567.77 crore / ₹106.20 crore (FY21), ₹2024.26 crore / ₹82.66 crore (FY22), and ₹2566.28 crore / ₹122.95 crore (FY23) for the last three fiscal years. With total revenue of ₹657.55 crore, it made a net profit of ₹34.83 crore during the first quarter of FY24, which concluded in June 2023.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 06 Nov 2023, 05:39 PM IST