The initial public offering (IPO) of auto ancillary player ASK Automotive was subscribed 51.14 times on the third and final day of the bidding process on Thursday, November 9. The offer closed today.

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The ASK Automotive IPO received bids for 105.85 crore shares against the issue size of 2.06 crore shares.

The strong subscription was led by Qualified Institutional Buyers (QIBs), whose category was booked a massive 142.41 times at close.

The NII quota was booked 35.47 times, while the retail portion of the issue was the least subscribed at 5.70 times.

According to market analysts, the company's shares are commanding a premium of ₹50 in the unlisted market.

The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing. Most investors track the grey market premium (GMP) of a stock to get an idea of the listing price.

Analysts mostly had a 'Subscribe' rating to the IPO given the company’s expansion plans, robust financial performance and reasonable valuation.

The company sold its shares in the range of ₹268-282 per share for its IPO. The issue is completely an offer for sale (OFS) of 2.95 crore equity shares. The funds raised from the issue will entirely go to the selling shareholders.

Under the OFS, promoters Kuldip Singh Rathee and Vijay Rathee will offload 2.06 crore shares and 88.7 lakh shares, respectively. Currently, Kuldip holds a 41.33% stake in ASK Automotive and Vijay owns a 32.3% stake in the company.

JM Financial, Axis Capital, ICICI Securities, and IIFL Securities acted as the book-running lead managers to issue. The shares of the company are proposed to be listed on both the exchanges, on November 20, as per the IPO schedule.

ASK Automotive is touted to be the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers (2W) in India with a market share of approximately 50% in fiscal 2023 in terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket (IAM), on a combined basis.

It has recently expanded its operations to cater to the top names in the EV sector such as TVS Motor, Ather, Hero Motocop, Greaves, Bajaj Auto and Revolt, which has further increased its market share.