Ask Automotive files DRHP for IPO with Sebi; check details

Ask Automotive is eyeing to launch an initial public offering (IPO). The New Delhi-based company has filed its draft red herring prospectus (DRHP) with capital markets regulator Sebi to raise funds via primary offering on Monday. However, the company has not disclosed the issue size.

According to the DRHP, the fundraising will entirely consist of an offer-for-sale (OFS) of up to 2,95,71,390 equity shares by promoters namely Kuldip Singh Rathee and Vijay Rathee, who will offload up to 2,06,99,973 equity shares and 88,71,417 equity shares, respectively.

Being entirely an offer for sale, the company will not receive any proceeds from the issue and entire net proceeds will go to selling shareholders of the company.

ASK Automotive is a manufacturer and supplier of automotive components with a key focus on advanced braking systems, aluminum; lightweight precision solutions and SCC products for the two-wheelers, three-wheelers, passenger vehicle and commercial vehicle sectors.

As of March 31, 2023, the company had a portfolio of 52 proprietary formulations that it used in the production of Advance Braking Systems. The company is also engaged in non-automotive components for All Terrain Vehicles and outdoor equipment and power tools; and other items including excess scrap and dies.

The company has a comprehensive portfolio of EV and powertrain-agnostic products and as of March 31, 2023, it was supplying safety systems and critical engineering solutions to nine two-wheeler electric vehicle OEMs in India.

For the year ended on March 31, 2023, Ask Automotive reported a net profit of Rs 122.95 crore with revenue from operations at Rs 2,554.17 crore. The net profit came in at Rs 82.66 crore with revenue operations at Rs 2,013.08 crore for the year ended on March 31, 2022.

The company has reserved 50 per cent of the offer for qualified institutional buyers (QIBs), while 15 per cent of equity shares will be reserved for non-institutional buyers. The remaining 35 per cent of shares will be allocated to the retail investors.

JM Financial, Axis Capital, ICICI Securities and IIFL Securities are book-running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. Shares of the company will be listed at both BSE and NSE.