Saturday, December 2, 2023

ask automotive shares: Auto ancillary player ASK Automotive to launch IPO on November 7. Check details

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Leading auto ancillary player ASK Automotive has announced plans to launch its IPO on November 7. The issue will be available for investors to bid till November 9.The offer comprises entirely an offer for sale (OFS) of up to 2.95 crore equity shares. The price band for the issue will be announced soon.

Under the OFS, promoters Kuldip Singh Rathee and Vijay Rathee will offload 2.06 crore shares and 88.7 lakh shares respectively.The company supplies safety systems and critical engineering solutions with in-house designing, developing and manufacturing capabilities.

Its offerings are powertrain agnostic, catering to electric vehicles as well as internal combustion engine original equipment manufacturers.

The company started its operations in 1989 by manufacturing brake shoe products for two-wheelers and has since diversified operations to include offerings such as advanced braking systems, aluminium lightweighting precision solutions, wheel assembly to 2W OEMs and safety control cables products.

Gurugram-based ASK Automotive has grown to be the largest manufacturer of brake-shoe and advanced braking products in India with a market share of approximately 50% in fiscal 2022 in terms of production volume for two-wheeler original equipment manufacturers, original equipment suppliers and the independent aftermarket combined, according to a Crisil report.The company has clients, including TVS Motor Company Ltd, Hero MotoCorp, Greaves Electric Mobility and Bajaj Auto.

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.

The promoter-selling shareholders will be entitled to the entire proceeds of the offer after deducting their portion of the offer expenses and relevant taxes thereon. The company will not receive any proceeds from the IPO.

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

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