ASK Automotive Mobilizes Over Rs 250 Crore From Anchor Investors Ahead of IPO

New Delhi, Nov 6: Auto ancillary player ASK Automotive has mobilized a little over Rs 250 crore from anchor investors ahead of its initial share sale, which opens for public subscription on Tuesday. The company has allotted 88.71 lakh equity shares to 25 funds at Rs 282 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website. At the price, the company has garnered Rs 250.17 crore from anchor investors.

Anchor Investors

Morgan Stanley Asia Singapore Pte, Copthall Mauritius Investment Ltd, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs Fund, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, Bajaj Allianz Life Insurance Company, Nippon India Mutual Fund MF, Tata MF, and Edelweiss MF are among the anchor investors.

IPO Details

The IPO is an offer for sale (OFS) of 2,95,71,390 equity shares by promoters -- Kuldip Singh Rathee and Vijay Rathee. Since the IPO is completely an OFS, the entire proceeds will go to shareholders divesting their shares. The issue, with a price band of Rs 268-282 per equity share, will be open for subscription during November 7-9. At the upper end of the price band, the IPO is expected to fetch Rs 833.91 crore.

Company Profile

Gurugram-based ASK Automotive is one of the largest manufacturers of brake-shoe and advanced braking (AB) systems for two-wheelers in India with a market share of approximately 50 per cent in Fiscal 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.

Book-Running Lead Managers

JM Financial Ltd, Axis Capital Ltd, ICICI Securities Ltd, and IIFL Securities Ltd are the book-running lead managers to issue. The equity shares are proposed to be listed on the BSE and NSE.

The ASK Automotive IPO is a significant development in the Indian automotive industry. The company's strong market position, experienced management team, and diversified product portfolio make it an attractive investment proposition. The IPO is expected to receive strong investor interest and is likely to be a successful offering.