ASK Automotive IPO

Listing Details ASK Automotive IPO Details

Listing Exchange BSE, NSE Open Date 07-Nov-23
Listing Date 15-Nov-23 Close Date 09-Nov-23
Listing Date 15-Nov-23 Lot Size 53
IPO Price Range ₹ 268 IPO Size ₹ 833.91 Cr
Listing Price ₹ 304.9 IPO Price Range₹ ₹ 268 to ₹
282
Listing Change 8.1 % Min Investment ₹ 14204
Last Traded Price ₹ 297 Basis of Allotment 15-Nov-23
Current Change 5.3 % Refunds 16-Nov-23
Credit to Demat Account 17-Nov-23
Listing Date 20-Nov-23

ASK Automotive IPO Synopsis

ASK Automotive Limited IPO is all set to open from 7th November to 9th November 2023.
The company is engaged in the business of producing Advance Braking Systems. The IPO
includes an Offer for Sale (OFS) of 29,571,390 equity shares worth around ₹834 cr. The
share allotment date is 15th November, and the IPO will be listed on 20th November on the
stock exchanges. The price band is ₹268 to ₹282 per share and the lot size is 53 shares.

JM Financial Limited, Axis Capital Limited, ICICI Securities Limited, and IIFL Securities
Limited are the book-running lead managers for this IPO, while Link Intime India Private
Limited is the registrar.

Objectives of ASK Automotive IPO:

The company will not receive any proceeds. The entire Offer Proceeds will be received by
the Selling Shareholders.
About ASK Automotive
Established in 1988, ASK Automotive Limited is an auto ancillary company. It produces
Advance Braking Systems (AB) used in different types of vehicles. The company has an
impressive market share of about 50% for FY2023 in terms of production volume, serving
both original equipment manufacturers ("OEMs") and the branded independent aftermarket
("IAM"). ASK Automotive is renowned for being the leading 2-wheeler branded independent
aftermarket (IAM) with respect to production volume as of FY2023 in India.
Its diversified offerings include (i) AB systems; (ii) aluminium lightweighting precision
(“ALP”) solutions (iii) wheel assembly to 2W OEMs (iv) safety control cables (“SCC”)
products. These products are used in two and three-wheelers, passenger vehicles, commercial
vehicles, non-automotive sectors for all-terrain vehicles (“ATVs”), and power tools and
outdoor equipment.
The company has 15+ manufacturing facilities spread across five states in India and works
with some popular auto brands such as TVS, Bajaj, Yamaha, Royal Enfield, and more.

ASK Automotive Financial Status

Profit and Loss

Revenue(in cr)
Balance Sheet(in cr)

Share capital(in cr)

Total Liabilities(in c)
ASK Automotive IPO Key Points
Strengths

1. The company is a well-established manufacturer of safety systems and critical

engineering solutions and provides solutions to some largest OEMs in the country.
2. R&D-led production with a focus on customer satisfaction and advanced material
knowledge for customization.
3. The company also has a technology and innovation-driven manufacturing process, along
with a comprehensive solution suite for EV and ICE sectors.
4. It has long-standing customer relationships with Indian and global OEM players.
5. The company also has showcased healthy financial metrics.
6. The management team and board are quite experienced.
Risks

1. 80% of the company’s revenues come from the Indian two-wheeler automotive sector.
2. The top three customers contribute significantly to the revenue.
3. The availability of counterfeit products and a failure to keep the technical knowledge
confidential may have adverse effects on the business.
4. The company relies on third-party dealers to market, sell and deliver products in the
independent aftermarket (“IAM”) category.
5. The company's manufacturing facilities are based in only Haryana, which creates
geographical concentration.
6. ASK Fras-Le Friction Private Limited, the company’s Joint venture has incurred losses
in the past.
7. Its subsidiary has a negative net worth and may not be able to turn profitable in the
future.
8. Higher working capital and working expenditure requirements.
9. Exposed to foreign exchange rate fluctuations.

Peer Comparison
● Endurance Technologies Limited
● Uno Minda Limited
● Suprajit Engineering Limited
● Bharat Forge Limited