ASK Automotive issue subscribed 38% on Day 1

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The ₹834-crore initial public offering of ASK Automotive Ltd was subscribed 0.38 time or 38 per cent on Day 1 of issue opening on Tuesday. The issue, which comes at price band of ₹268-282, will close on Thursday. The market lot is 53 shares.

The issue consists offer-for-sale of 2.96 crore shares by promoters Kuldip Singh Rathee and Vijay Rathee.

ASK Automotive IPO has reserved not more than 50 per cent of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15 per cent for Non Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for Retail Investors.

While non-institution portion was subscribed 0.41 times, quota of retail investors got 0.57 times. On the other hand, QIB portion received just 0.03 times.

ASK Automotive IPO raises ₹250.17 crore from 25 anchor investors including marquee names such as Morgan Stanley, Goldman Sachs, Neuberger Berman, Florida Retirement System, Integrated Core Strategies, BNP Paribas Arbitrage, Societe Generale, and Copthall Mauritius Investment. Domestic institutions including Nippon Life India, ICICI Prudential Mutual Fund, SBI Life Insurance Company, Tata Mutual Fund, ICICI Prudential Life Insurance Company, Canara Robeco Mutual Fund, Abakkus Diversified Alpha Fund, Edelweiss Trusteeship, and Bajaj Allianz Life Insurance Company also participated in the anchor book.

They were allotted 88,71,416 equity shares at ₹282 per share.

It has 15 manufacturing facilities across five states and the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India, also specialises in aluminium light-weighting precision solutions, wheel assembly, and safety control cables products, serving both the automotive and non-automotive sectors. ASK Automotive supplies to Original Equipment Manufacturers like HMSI, HMCL, Suzuki, TVS, Yamaha, Bajaj, Royal Enfield, Denso, Magneti Marelli, and others. It also provides to the independent aftermarket and the export market through its manufacturing facilities located in different parts of the country.

The offer’s book running lead managers are JM Financial Limited, Axis Capital Limited, ICICI Securities Limited, and IIFL Securities Limited. Link Intime India Private Ltd is the registrar for the issue.