ASK Automotive IPO subscribed 78% on Day 2 so far; NIIs & retail portions fully booked

The initial public offering (IPO) of ASK Automotive continued to see a decent response from the investors during the second day of the bidding process, mostly over the heavy bidding from HNI and retail investors. The issue, which had opened on Tuesday, November 7, was booked 38 per cent on day one.

ASK Automotive's primary offering 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 1,60,58,470 equity shares, or 78 per cent, compared to the 2,06,99,974 equity shares offered for the subscription by 1.30 pm on Wednesday, November 8. The three-day bidding for the issue will conclude on Thursday, November 9.

The portion reserved for retail investors was subscribed 1.10 times, while the allocation for non-institutional investors (NIIs) saw a subscription of 1.01 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked merely three per cent as of the same time.

ASK Automotive is a manufacturer of advanced braking systems (ABS) for two-wheelers in India as well as overseas. 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.

"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.

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.

ASK will continue to grow better than the industry, able to diversify its product basket, offer new solutions for existing products and increase the content per vehicle for its products. Therefore we recommend a 'subscribe' to the issue, said Reliance Securities.
 

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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