The initial public offering (IPO) of ASK Automotive will open for subscription next week on Tuesday, November 7. The three-day bidding process will conclude on November 9, and the bidding for anchor investors will open on November 6, according to the red herring prospectus (RHP).

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The price band for the public offer will be disclosed over the next few days.

The IPO is completely an offer for sale (OFS) of 2,95,71,390 equity shares by promoters Kuldip Singh Rathee and Vijay Rathee without any fresh issue component. Currently, Kuldip holds a 41.33% stake in ASK Automotive and Vijay owns a 32.3% stake in the company.

As there is no fresh issue component, the entire IPO proceeds, excluding the IPO expenses, will be received by the selling shareholders and the company will not receive any funds from the issue.

Financials

The Gurugram-based firm posted a net profit of ₹122.9 crore for the year ended March FY23 from ₹82.6 crore in the year-ago period. During the same period, revenue from operations rose to ₹2,555.17 crore from ₹2,013 crore.

The net profit for the quarter ended June FY24 has risen to ₹34.83 crore from ₹22.5 crore last fiscal, and revenue during the same period increased to ₹656.5 crore from ₹603.7 crore.

Company overview

ASK Automotive is one of the largest manufacturers of brake-shoe and advanced braking (AB) systems for two-wheelers in India with a market share of approximately 50% in fiscal 2022.

The company supplies safety systems and critical engineering solutions with in-house designing, developing, and manufacturing capabilities. Its offerings are powertrain-agnostic, catering to electric vehicles (EV) as well as internal combustion engine original equipment manufacturers. The company’s clients include TVS Motor Company Ltd, Hero MotoCorp, Greaves Electric Mobility and Bajaj Auto, among others.

JM Financial Ltd, Axis Capital Ltd, ICICI Securities Ltd, and IIFL Securities Ltd are the book-running lead managers to the issue.

The finalisation of basis of allotment of IPO shares will take place by November 15 and the equity shares will be credited to demat accounts of successful investors by November 17.

Shares of the company are proposed to be listed on both BSE and NSE , on November 20, as per the IPO schedule.