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  • Writer's pictureJatin Agarwal

ASK Automotive IPO


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ASK Automotive IPO: Everything You Need to Know


Introduction

ASK Automotive is a leading manufacturer of automotive brake systems and components in India. The company offers a wide range of products, including brake pads, brake rotors, and brake calipers. ASK Automotive has a strong track record of growth and profitability, having grown its revenue and net income at a CAGR of over 20% in the past five years.


The company is planning to raise ₹834 crore in its IPO, which is expected to open on November 7, 2023 and close on November 9, 2023. The IPO will be entirely an offer for sale (OFS) of 29,571,390 shares. The price band for the IPO has been set at ₹268 to ₹282 per share.


Company Overview

ASK Automotive was founded in 1996 by Mr. Ashok Jain. The company is headquartered in Gurugram, India and has manufacturing facilities in Haryana and Uttarakhand. ASK Automotive supplies its products to a variety of customers, including original equipment manufacturers (OEMs), aftermarket suppliers, and exporters.


Company Management

ASK Automotive has a strong management team with experience in the automotive industry. The CEO, Mr. Ashok Jain, has over 25 years of experience in the industry and has led ASK Automotive to significant growth in recent years.


Competitive Landscape

ASK Automotive competes in a highly competitive industry. The company's main competitors include Brakes India, Sundaram Brakes, and Minda Industries. These companies offer similar automotive brake systems and components to ASK Automotive.


Industry Outlook

The automotive industry in India is expected to grow significantly in the coming years. This growth is being driven by a number of factors, including:

  • Rising disposable incomes in India

  • Growing middle class in India

  • Increasing urbanization in India

  • Government initiatives to promote the automotive industry

IPO Overview

ASK Automotive is planning to raise ₹834 crore in its IPO, which is expected to open on November 7, 2023 and close on November 9, 2023. The IPO will be entirely an offer for sale (OFS) of 29,571,390 shares. The price band for the IPO has been set at ₹268 to ₹282 per share.


IPO Details

  • IPO Date: November 7, 2023

  • Listing Date: November 20, 2023

  • Promoter holding (pre and post IPO): 78.09% [post-IPO holding]%

  • Lot Size: 53 shares

  • IPO Price Band: ₹268 to ₹282 per share


Objectives of the Issue

ASK Automotive plans to use the proceeds from its IPO to:

  • Expand its manufacturing capacity

  • Develop new products and technologies

  • Pay off debt

  • Fund general corporate purposes

IPO Grey market premium (GMP)

The IPO grey market premium (GMP) for ASK Automotive is currently around ₹30 per share. This means that investors in the grey market are willing to pay ₹298 to ₹312 per share for the company's shares.



Crisp Insights:

  • ASK Automotive IPO GMP Today: The Company is commanding a GMP of Rs.30.

  • ASK Automotive GMP is around 10% and listing gains will depend upon the market conditions.

  • ASK Automotive IPO Review: ASK Automotive is a leading manufacturer of automotive brake systems and components in India. The company has a strong track record of growth and profitability. The company's IPO is a good opportunity for investors to gain exposure to a growing company in the automotive industry. However, investors should carefully consider their risk tolerance before investing in an IPO.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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