ASK Automotive shares deliver a mild listing pop at debut; lists at 8% premium at Rs 304.90

Shares of ASK Automotive Ltd made a decent debut at Dalal Street on Wednesday as the auto ancillary was listed at Rs 304.90, a premium of over 8 per cent over the issue price of Rs 282 per share on the BSE. Similarly, the stock kicked off its maiden trading session with an almost similar premium of 8 per cent at Rs 303.30 on NSE.

Ahead of its listing, shares of ASK Automotive were commanding a premium of Rs 28-30 per share in the grey markets, suggesting a listing pop of around 10 per cent to investors on debut. However, the premium in the unofficial market has corrected over the period, particularly since the closure of the issue.

ASK Automotive is a manufacturer of advanced braking systems (ABS) for two-wheelers in India as well as global markets. The company has 15 manufacturing units spread across five states in India, where it manufactures AB systems; aluminium lightweight precision, wheel assembly to 2W OEMs; and safety control cables.

The initial public offering (IPO) of ASK Automotive was open for bidding between November 7 to November 9. The company sold its shares in the fixed price band of Rs 268-282 apiece with a lot size of 53 equity shares. The issue was entirely an offer-for-sale (OFS) of up to 29,571,390 equity shares, aggregating to Rs 834 crore.

The issue was overall subscribed a strong 44.52 times, mostly led by qualified institutional bidders (QIBs), whose quota was 129.01 times. The portion set aside for non-institutional investors saw solid 34.2 times bidding. The allocation reserved for retail investors was subscribed 5.09 times during the three-day bidding process.
 

ICICI Securities, Axis Capital, JM Financial and IIFL Securities were the book running lead managers to the issue, while Link Intime India was appointed as the registrar for the issue. 

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