ASK Automotive IPO booked 21 times on Day 3 so far; bidding for the issue closes today

The initial public offering (IPO) of ASK Automotive continued to see a strong response from the investors during the third and final day of the bidding process, mostly over the heavy bidding from HNI and retail investors. The issue was booked 38 per cent on day one and ended day two with 1.34 times subscription.

ASK Automotive's initial public offering (IPO) is being sold in the fixed price band of Rs 268-282 apiece with a lot size of 53 equity shares and its multiples. The auto ancillary player is looking to raise Rs 834 crore via IPO route, which is entirely an offer-for-sale (OFS) of up to 2.96 crore equity shares.

According to the data, the investors made bids for 42,75,78,083 equity shares, or 20.66 times, compared to the 2,06,99,974 equity shares offered for the subscription by 2.15 pm on Thursday, November 9. The three-day bidding for the issue, which kicked off on Tuesday, November 6, will conclude today, that is, Thursday.

The portion reserved for qualified institutional bidders (QIBs) was subscribed 47.89 times, while the allocation for non-institutional investors (NIIs) saw a subscription of 23.53 times. However, the quota set aside for retail investors was booked 3.98 times as of the same time.

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

The company is facing some risks related to its dependence on a limited number of clients, the regional concentration of its manufacturing unit, and increasing debt. The IPO is coming at a PE valuation of 45.63 times, which is reasonably priced. Looking at these factors and the long-term growth prospects, we will give Subscribe rating to this IPO for long term, said Swastika.

ASK Automotive allocated 88,71,416 equity shares at an issue price of Rs 282 apiece to 25 anchor investors to raise Rs 250.2 crore. Axis Capital, JM Financial, ICICI Securities and IIFL Securities are the book running lead managers to the issue, while Link Intime India is the registrar for the issue. Shares of ASK Automotive will be listed on both BSE and NSE.

"We are positive on Ask Automotive on account of benefits from the EV evolution, investment in R&D to address market trends by creating new products, increased revenue from exports, plans to diversify its product offerings in the AB systems and ALP solutions categories to expand its addressable market," said SMIFS with a subscribe rating.
 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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