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ASK Automotive Limited plans to raise up to Rs 834 crore through an initial public offering (IPO). The subscription for the IPO will be open from November 7 to November 9, 2023. The price band is fixed at Rs 268–Rs282 per share and the face value is set at Rs 2 apiece.
The IPO comprises only offer for sale of 2,95,71,390 equity shares aggregating up to Rs 833.91 crore. The size of one lot is 53 shares.
Company Summary
ASK Automotive Limited is safety systems and critical engineering solutions provider with in-house designing, developing and manufacturing capabilities. The company’s offerings are powertrain agnostic, catering to electric vehicle (“EV”) as well as internal combustion engine (“ICE”) original equipment manufacturers (“OEMs”).
The company’s operations include offerings such as advanced braking (“AB”) systems, aluminium lightweighting precision (“ALP”) solutions, wheel assembly to 2W OEMs, and safety control cables (“SCC”) products.
The company’s R&D capabilities include advanced material engineering capabilities, with a portfolio of 52 proprietary formulations as of June 30, 2023, that we use in the production of AB systems for 2Ws, 3Ws, PVs and CVs, customized to safety, durability and performance specifications of EV and ICE OEMs; and their precision engineering, in-house tool designing, design simulation, prototyping and manufacturing abilities, provide them with a competitive advantage in quality, cost and delivery (“QCD”) parameters.
Similarly, the company’s R&D capabilities for its ALP solutions include the ability to design and prototype complex components and parts, and deliver on specific lightweighting specifications to meet all safety and performance requirements for our customers.
It has established strong relationship with TVS Motor, Ather Energy, Hero MotoCorp, Greaves Electric Mobility, Bajaj Auto, Revolt Intellicorp, Honda Motorcycle, Yamaha Motor, and Suzuki Motorcycle.
The company operates 15 manufacturing facilities across five states in India, majority of which are strategically located in close proximity to our OEM customer. Further, it recently commenced commercial manufacturing operations at our 16th manufacturing facility in Bhiwadi (Rajasthan) in July 2023.
Company Strengths
- Well established manufacturer of safety systems and critical engineering solutions.
- Robust production model driven by research and development.
- Technology and innovation-driven manufacturing process, with an extensive suite of systems and solutions for electric vehicle (“EV”) as well as internal combustion engine (“ICE”) sectors.
- Long-standing customer relationships with both Indian and global OEM players.
- Track record of consistent financial performance and efficient use of capital.
- Experienced promoters and senior management comprise professionals with expertise in in the automotive industry.
Company Financials
| Period Ended | Q1FY24 | FY23 | FY22 | FY21 |
| Total Assets (Rs in crore) | 1,443.34 | 1,281.21 | 1,105.56 | 948.25 |
| Total Revenue (Rs in crore) | 657.55 | 2,566.28 | 2,024.26 | 1,567.77 |
| Revenue from Operations (Rs in crore) | 656.51 | 2555.17 | 2013.08 | 1543.99 |
| EBITDA (Rs in crore) | 64.74 | 247.55 | 182.26 | 210.11 |
| EBITDA Margin | 9.85% | 9.65% | 9.00% | 13.40% |
| Profit After Tax (Rs in crore) | 34.83 | 122.95 | 82.66 | 106.2 |
| PAT Margin | 5.30% | 4.79% | 4.08% | 6.77% |
| Return on Average Equity | 5.25% | 19.27% | 13.33% | 17.00% |
| Return on Average Capital Employed | 5.31% | 22.06% | 16.76% | 21.98% |
| Debt to Equity Ratio | 0.57 | 0.49 | 0.25 | 0.13 |
Purpose of the IPO
- The objects of the IPO are to carry out the Offer for Sale of up to 29,571,390 equity shares by the selling shareholders aggregating up to Rs 833.91 crore and achieve the benefits of listing the equity shares on the stock exchanges.
- The company expects the listing of its equity shares will enhance the brand visibility and provide liquidity to its existing Shareholders.
Company Promoters
Kuldip Singh Rathee and Vijay Rathee are the promoters of the company.
IPO Details
IPO Subscription Date | November 7, 2023 to November 9, 2023 |
Face Value | Rs 2 per share |
Price Band | Rs 268 to Rs 282 per share |
Lot Size | 53 Shares |
Total Issue Size | Rs 833.91 crore |
Offer for Sale | 29,571,390 shares aggregating up to Rs 833.91 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 53 | Rs 14,946 |
Retail (Maximum) | 13 | 689 | Rs 1,94,298 |
Small HNI (Minimum) | 14 | 742 | Rs 2,09,244 |
Small HNI (Maximum) | 66 | 3,498 | Rs 9,86,436 |
Large HNI (Minimum) | 67 | 3,551 | Rs 10,01,382 |
Allotment Details
Event | Date |
Allotment of Shares | November 15, 2023 |
Initiation of Refunds | November 16, 2023 |
Credit of Shares to Demat Account | November 17, 2023 |
Listing Date | November 20, 2023 |
To check allotment, click here