ASK Automotive Limited IPO - Review,Valuation, Date, & GMP

ASK Automotive Limited IPO - Complete Overview

ASK Automotive was founded in 1988 by visionary first-generation entrepreneur Mr. Kuldip Singh Rathee. It is a company that specializes in the production of vital components for motorcycles and scooters. 

They sell their stuff to big companies in the two-wheeler industry like Honda Motorcycle and Scooter India and Hero MotoCorp. They also send their products to other countries. They are known for being good at making important car parts, and that's why people trust them.

ASK Automotive is a part of India's 'Make in India' program, supported by the government. They export their products to 12 countries worldwide. With manufacturing facilities that have top-notch certifications for quality and safety. 

They also have a network of 15 manufacturing facilities located in India.

 

What does the company do?

ASK Automotive makes things for vehicles. They create advanced braking systems, which are like brake parts for motorcycles, scooters, cars, and trucks, whether they run on regular fuel or electricity.

They also produce lightweight parts for vehicles, like engine pieces, body parts, and things for the wheels. These parts are used in motorcycles, scooters, cars, and trucks, whether they use regular fuel or electricity. They also make safety control cables, like the cables for brakes and throttles, which are essential for making vehicles safe.

 

 

IPO’s Overview

ASK Automotive Limited's IPO IPO date is slated to be open for subscription from November 7, 2023, to November 9, 2023. This BSE NSE IPO follows a Book-Built Issue IPO.

The ASK Automotive Limited IPO price is fixed at Rs. 268 to Rs. 282 per share. The upcoming BSE NSE IPO will be listed on November 20, 2023.

The total issue size of this IPO amounts to Rs. 834 Crores. Within this total issue, 35% is issued to retail investors.

 

ASK Automotive Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	7 November 2023
IPO Closing Date	9 November 2023
IPO Allotment Date	15 November 2023
Refund initiation	16 November 2023
IPO Listing Date	20 November 2023

 

ASK Automotive Limited IPO Details

IPO Opening & Closing Date	7 November to 9 November 2023
Face value	Rs. 2 per Share
Issue Price	Rs. 268 to Rs. 282 per Share
Lot Size	53 Shares
Price of 1 lot	Rs. 14,946
Total Issue Size	29,571,390 Shares (aggregating up to Rs. 834.00 Cr)
Offer for Sale	29,571,390 Shares of Rs. 2 (aggregating up to Rs. 834.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

ASK Automotive Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (S-HNI)	14 Lot

 

 

ASK Automotive Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion (HNI)	15%
Retail share Portion	35%

 

Company Financial

(Amount in Crore)

Period	FY 23	FY 22	FY 21
Total Assets	1,281.21	1,105.56	948.25
Total Revenue	2,566.28	2,024.26	1,567.77
PAT	122.95	82.66	106.20
Net worth	643.77	631.91	622.23
Reserve & Surplus	604.34	591.73	581.54
Total Borrowings	231.82	119.78	54.02

 

Revenue By Operations 

(Amount in Million)

Revenue by Geography	FY 23	FY 22	FY 21
Domestic	24,661.55	19,153.89	14,834.28
Export	971.40	885.71	714.11
Total	25,632.95	20,039.60	15,548.39

 

The Objective of the Issue

The company won't make any money from the offer. Instead, all the money made in the offer will go to people willing to sell their shares. They will get money based on how many shares they sell.

 

Management and Promoters of ASK Automotive Limited IPO

The company was established by Kuldip Singh Rathee and Vijay Rathee. Right now, they own all the shares of the company. But when they sell some shares in the offer for sale (OFS), their ownership will decrease from 100% to 85%

Pre-issue Promoter shareholding	100%
Post-issue Promoter shareholding	-

 

Peers of ASK Automotive Limited IPO

Name of the Company	P/ E	Revenue from Operations (in Rs. million)	EPS (Basic) (Rs.)
ASK Automotive Limited*	45.63	25,551.67	6.18
Endurance Technologies Limited	51.04	88,040.46	29.07
Uno Minda Limited	49.06	1,12,364.90	11.42
Suprajit Engineering Limited	34.92	27,523.55	10.99
Bharat Forge Limited	70/68	1,29,102.59	11.35

 

IPO's Valuations

To evaluate the IPO's valuation, we can study the information presented in the company's DRHP. ASK Automotive Limited’s IPO price is set at Rs. 268 to Rs. 282 per share, with an EPS of Rs. 6.18. Based on the issue price the company's P/E ratio is calculated at 45.63.

 

Dividend Policy

According to, the company did not distribute dividends in the preceding fiscal years, and its capacity to declare dividends in the future hinges on its earnings and financial health.

 

IPO's Strengths

• The company is a trusted manufacturer of safety systems and engineering solutions for major vehicle makers in India.
• They emphasize research and design to create tailored, lightweight products using advanced materials.
• Their focus on technology and innovation allows them to offer custom solutions for both electric and traditional vehicles through ongoing research and design efforts.
• The company has established strong, long-term relationships with customers in India and worldwide due to their expertise in developing complex safety systems.
• They continually enhance their engineering skills through in-house training, ensuring their workforce stays up-to-date with the latest manufacturing technologies.

 

IPO Weaknesses

• Half of the company's income comes from its top 3 customers, and one of them provides 30% of the revenue. Losing any of these customers would hurt the business.
• The company relies on outside suppliers for raw materials and doesn't have exclusive deals with them. Losing these suppliers could harm the company's operations.
• The company doesn't own its Registered Office and some manufacturing facilities' land. If they can't renew their leases on good terms, it could badly affect their business.
• The company needs a lot of power, fuel, and water to work. Any problems with these resources or their cost going up would hurt the business.
• The company depends on contract labor for certain tasks. A disruption in the supply of this labor could harm the business.

 

 

IPO GMP Today

The GMP of ASK Automotive Limited IPO is not available.

 

Conclusion

In this article, we've taken a close look at the ASK Automotive IPO Review for 2023. The car industry is growing, and the company is also doing well, so it seems like the company has a bright future ahead.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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