ASK Automotive shares list at 8% premium over IPO price
ASK Automotive listed at a premium of 8% on the exchanges on Wednesday. The stock debuted at Rs Rs 304.9 on BSE, up 8.1% over the IPO price of Rs 282.
Meanwhile, on NSE, it got listed at Rs 303.3, up 7.5%.
The issue, which was entirely an offer for sale (OFS) of 2.95 crore equity shares, received an overwhelming response from investors across categories, especially from QIBs, whose category was subscribed 142 times.
Analysts said the robust demand for the public offer was due to the company being a preferred partner, catering to almost all automobile companies in the critical equipment segment.
«We strongly believe that ASK Automotive gives allotted investors a long-term opportunity to hold and raid the growth in automobile sector.
All allotted investors can hold for long term, while those who failed to get allotments, can accumulate on the listing day,» said Prashanth Tapse, Research Analyst-Sr VP Research, Mehta Equities.
ASK Automotive 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 is the largest manufacturer of brake-shoe and advanced braking systems for two wheelers in India with market share of 50% in FY2023.
Between FY21 and FY23, the company’s revenue from operations has grown 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
