ASK Automotive IPO opens on November 7. Here are 10 things to know about the offer
The lender has fixed a price band of Rs 268-282 per equity share for the IPO. Investors can bid for a minimum of 53 shares and in multiples thereafter. About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
The initial public offering (IPO) of ASK Automotive will open for subscription on November 7. The issue closes on November 9. The company’s shares are expected to get listed on both the exchanges. Here are 10 things to know about the offer.
- What is the business overview of ASK Automotive?
The company supplies safety systems and critical engineering solutions with in-house designing, development, and manufacturing capabilities. Its offerings are powertrain agnostic, catering to electric vehicles as well as internal combustion engine original equipment manufacturers
- What is the industry overview of ASK Automotive?
India is the largest motorized two-wheeler market in the world, with domestic sales of 16.25 million units in FY23. It constitutes approximately 76% of the total market comprising two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles by volume; and approximately 16% in value terms.
- What is the size of ASK Automotive IPO?
The offer comprises entirely an offer for sale (OFS) of up to 2.95 crore equity shares. There is no fresh issue segment in the Rs 834-crore IPO.
- Who are the selling shareholders under OFS?
Under the OFS, promoters Kuldip Singh Rathee and Vijay Rathee will offload 2.06 crore shares and 88.7 lakh shares, respectively.
- What is the price band for ASK Automotive IPO?
The lender has fixed a price band of Rs 268-282 per equity share for the IPO. Investors can bid for a minimum of 53 shares and in multiples thereafter.
- What is the structure of ASK Automotive IPO?
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
- How is the financial performance of ASK Automotive?
Between FY21 and FY23, the company’s revenue from operations grew at a CAGR of 28.64%, while EBITDA grew at a CAGR of 13.11% during the same period.In the three months ended June 2023, the company clocked revenues of Rs 656 crore, up 8% year-on-year, while profit increased 55% to Rs 35 crore.
- What are the objects of ASK Automotive IPO?
The promoter-selling shareholders will be entitled to the entire proceeds of the offer after deducting their portion of the offer expenses. The company will not receive any proceeds from the IPO.
- What is the current GMP of ASK Automotive?
According to market analysts, the current GMP of ASK Automotive is Rs 0 in the unlisted market.
- Who are the book-running lead managers for the ESAF SFB IPO?
JM Financial, Axis Capital, ICICI Securities, and IIFL Securities are the book-running lead managers to issue.
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