ASK Automotive Limited, IPO, GMP Price, Lot Size, Listing Date

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Feature of the story

  • ASK Automotive Ltd.'s book building initial public offering (IPO) price range is ₹268 to ₹282, with a face value of ₹2 per share
  • There won't be any new issues included in ASK Automotive Ltd.'s initial public offering (IPO); there will just be an offer for sale (OFS).
  • 2,95,71,390 shares (or around 2.95 lakh shares) are being sold as part of ASK Automotive Ltd's offer for sale (OFS) portion of its initial public offering (IPO).

ASK Automotive Limited, IPO, GMP Price, Lot Size, Listing Date

About ASK Automotive Limited

In 1989, ASK Automotive was established. The company was founded as a producer of two-wheeler brake shoe products. With a combined market share of almost 50% in terms of production volume for OEM and the branded independent aftermarket (IAM) in fiscal 2023, ASK Automotive is the biggest producer of brake shoes and sophisticated braking systems for two-wheelers in India. Vijay and Kuldip Singh Rathee are the company's promoters.

Market Position

As of FY23, ASK Automotive held a 9% market share in terms of manufacturing volume, making it one of the top two-wheeler OEMs in India.

With a roughly 50% market share in production volume for OEMs and the branded independent aftermarket combined, the company is the biggest producer of brake shoes and AB systems for two-wheelers in India.

Objects of the ASK Automotive Limited IPO:

1. Market Leadership: According to the company, it is the biggest producer of brake shoes and sophisticated two-wheeler braking systems in India.

2. Diverse Product Portfolio: The organization has added new products to its lineup over the years. They provide wheel assemblies, safety control cables (SCC) goods, and aluminum light weighting precision (ALP) solutions in addition to brake shoes and innovative braking systems. They can serve a wider spectrum of automotive and non-automotive sectors thanks to their diversity.

3. In-House Design and Engineering Capabilities: The business emphasizes how they can create intricate precision parts and solutions thanks to their in-house design and engineering capabilities.

4. Powertrain Agnostic: the Company’s products are referred to as "powertrain agnostic," which implies that they can meet the needs of OEMs of internal combustion engines (ICEs) as well as electric vehicles (EVs).

5. Product Importance: The company highlights how important safety control cables and braking systems are for driving safety, stressing their need for technological know-how as well as ongoing research and development.

6. ALP Solutions for Efficiency: By lowering component weight and assisting with thermal management, the company's ALP solutions and products seek to enhance performance, safety, and efficiency.

ASK Automotive IPO:

The ASK Automotive IPO is a book-built offering. The entire purpose of the issuance is to sell 2.96 crore shares.

November 7, 2023, was the day of the ASK Automotive IPO auction, which concluded on November 9, 2023. This Friday, November 10, 2023, was the final day of the allocation for the ASK Automotive IPO.

On November 15, 2023, the shares were listed on the BSE and NSE. The price range for ASK Automotive's IPO is ₹268 to ₹282 per share.

Lot size

53 Shares is the minimum lot size required for an application. Retail investors are required to invest a minimum of ₹14,946. For both sNII and bNII, the minimum lot size investment is ₹1,001,382 for 14 lots (742 shares) and ₹209,244 for 67 lots (3,551 shares).

Listing date:

The initial public offering (IPO) date of ASK Automotive Limited has been set for November 15, 2023. The company's equity shares will be listed and permitted for trading on the Exchange under the 'B' Group of Securities list." The BSE notification continued by stating that on Wednesday's trades, there will be a special pre-open session for the IPO listing of ASK Automotive.

Experts in the stock market claim that investors responded well to the public offering, particularly in the QIB section. They claimed that the company's fundamentals are also appealing. They did, however, continue to assert that a greater value and a 100% offer for sale (OFS) may restrict the listing advantages. However, market analysts insisted that since the ASK Automotive IPO listing price is anticipated to be between ₹302 and ₹312 per share, an allottee may be able to anticipate a listing premium of about 10%.

ASK Automotive IPO listing price prediction:

Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the ASK Automotive IPO listing, saying, "ASK Automotive Limited's fundamentals are appealing; however its prices are a little higher. In addition, 100% OFS is the problem, which can restrict the listing premium for allottees. However, the business is in the automobile sector, which is predicted to continue growing in the medium to near future. Thus, an 8–10% listing gain from the public offer is to be expected."

"Despite being a fully priced-in initial public offering (IPO) and 100% offer-for-sale by the Rathee family, the issue garnered a tremendous amount of interest from various investors, including QIB, which expressed interest 142 times.

ASK Automotive IPO GMP today:

Market watchers report that shares of ASK Automotive Limited are currently trading on the gray market for ₹28 premium. Accordingly, the current grey market premium (GMP) for ASK Automotive's IPO is ₹28. The gray market suggests that the listing price for ASK Automotive's IPO would be approximately ₹310 (₹282 + ₹28) per share. The equity shares in the public offering were priced between ₹268 and ₹282.

As anticipated by analysts, ASK Automotive's shares debuted on November 15 at an 8 percent premium. In contrast to the issue price of Rs 282, the stock debuted at Rs 303.3 on the NSE and at Rs 304.9 on the BSE. Because of the company's strong financial results and leadership in the two-wheeler brake shoe and Advance Braking System (ABS) markets, several analysts now advise owning the stock.

ASK Automotive IPO Buy or not:

The initial public offering (IPO) had a price range of Rs 268–282 per share, and it opened on November 7 and closed on November 9. The public offering brought in Rs 834 crore for the company. The corporation will not get any money from the offer because it was only an offer to sell 2.95 crore shares, with all proceeds going to the selling shareholders.

 "Those who have a medium- to long-term perspective can also hold the stock with the given stop-loss, but allottees who applied for the public offering for listing premium are advised to maintain their stop-loss at Rs 290 and wait for further upside.

Major Points Facts ASK Automotive Ltd:

  • The ASK Automotive Ltd group exports to 48 countries worldwide and operates 15 production plants throughout India.
  • It uses fifteen production facilities to carry out its business, supported by a complete design center, a tool manufacturing facility, R&D labs, and testing labs.
  • Technical partnerships exist between ASK Automotive Ltd. and a Japanese provider of asbestos-free brake shoes to two-wheeler manufacturers worldwide.

FAQs (Frequently Asked Questions)

Q: What is the company profile of ask?

Founded on January 18, 1988, Ask Automotive Limited is a publicly traded corporation without a stock exchange.

Q: When is ASK Automotive IPO coming?

From November 7, 2023, until November 9, 2023, the ASK Automotive IPO will take place.

Q: What is the size of Ask Automotive IPO?

The size of Ask Automotive IPO is Rs. 834 crores.


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