The highly anticipated initial public offering (IPO) of ASK Automotive Ltd has officially entered the primary market, with the public issue open for bidding until November 9, 2023. This move marks a significant milestone for the auto company, which has set the price band for its IPO at ₹268 to ₹282 per share, aiming to raise an impressive ₹834 crore by issuing 29,571,390 fresh shares.
Ask Automotive IPO Details
| IPO Date | November 7 to November 9, 2023 |
| Listing Date | Not Announced |
| Face Value | ₹2 per share |
| Price Band | ₹268 to ₹282 per share |
| Lot Size | 53 Shares |
| Total Issue Size | 29,571,390 shares (aggregating up to ₹834.00 Cr) |
| Offer for Sale | 29,571,390 shares of ₹2 (aggregating up to ₹834.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Ask Automotive IPO Subscription Status
As of day one of bidding, the public issue has garnered a subscription rate of 0.38 times, with the retail portion showing interest at 0.56 times. The NII (Non-Institutional Investors) portion has also seen healthy participation, subscribed 0.41 times.
Key Details About Ask Automotive IPO
- ASK Automotive IPO GMP: The grey market premium for ASK Automotive Ltd stands at ₹35, indicative of early investor enthusiasm.
- Issue Price Range: ASK Automotive has set the IPO price range at ₹268 to ₹282 per equity share, providing potential investors with a transparent pricing structure.
- Subscription Window: The IPO subscription window opened on the launch day and will remain accessible until November 9, 2023, providing interested parties ample time to evaluate their investment.
- Fundraising Goal: ASK Automotive aims to raise ₹834 crore by issuing 29,571,390 fresh shares, highlighting the ambitious scale of this offering.
- Lot Size: Prospective bidders can apply for this IPO in lots, each comprising 53 company shares, allowing for investment flexibility.
- Minimum Investment: Retail investors will need a minimum of ₹14,946 (₹282 x 53) to participate in this public offer, ensuring accessibility for a broad range of investors.
- Allotment Date: In line with the T+3 listing schedule, the expected ASK Automotive IPO allotment date is November 10, 2023, promising a swift transition to the secondary market.
- Listing Platforms: The public issue is slated for listing on the BSE and NSE, with the likely listing date being November 14, 2023.
Offer Structure
It’s important to note that the ₹834-crore public issue comprises solely an offer-for-sale of 2.95 crore equity shares by the Rathee family, with no fresh issue portion. Consequently, the proceeds will be directed to the promoters, and the company will not receive any funds from the offer.
Allocation Breakdown
Of the total issue size, half has been reserved for qualified institutional buyers, with 15 percent allocated to high net-worth individuals (non-institutional investors). The remaining 35 percent is earmarked for retail investors.
Anchor Investments
Before the IPO launch, ASK Automotive successfully secured ₹250 crore from anchor investors, including prominent names like Morgan Stanley, Neuberger Berman, and Goldman Sachs, among others. This strong support from institutional investors underscores the confidence in the company’s potential.
Business Operations
ASK Automotive operates across 15 manufacturing facilities spanning five states. It holds the distinction of being the largest manufacturer of brakeshoe and advanced braking systems for two-wheelers in India. Additionally, the company specializes in aluminum lightweight precision solutions, wheel assembly, and safety control cable products, catering to both automotive and non-automotive sectors.
ASK Automotive Grey Market Momentum
Before hitting the official market, ASK Automotive Ltd.’s shares have already made waves in the grey market, trading at a 12 percent premium over the upper price band.
With its robust business model and impressive track record, ASK Automotive Ltd.’s IPO has generated substantial investor interest. The company’s strategic positioning in the auto ancillary sector, coupled with strong financial performance, makes it an intriguing prospect for potential investors. However, you must do your due diligence before you decide to invest.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
What is the price range for ASK Automotive IPO shares?
The price range for ASK Automotive IPO shares is ₹268 to ₹282 per equity share.
When is the IPO subscription window open until?
The IPO subscription window is open until November 9, 2023.
How much does a retail investor need to invest in the ASK Automotive IPO?
A retail investor will require a minimum of ₹14,946 to apply for this public offer.
When is the expected allotment date for ASK Automotive IPO shares?
The expected allotment date for ASK Automotive IPO shares is November 10, 2023.
I’m Archana R. Chettiar, an experienced content creator with
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