ASK Automotive IPO: GMP, subscription status on day 2, review, other details. Should you apply or not?
- ASK Automotive IPO subscription on day 1 was lacklustre with only 38% of the issue booked. ASK IPO subscription on day 2 is 1.34 times; retail portion fully subscribed. ASK Automotive IPO GMP today is +54; estimated listing price indicated at ₹336 apiece.
ASK Automotive IPO has opened for subscription on Tuesday, November 7, and will close on Thursday, November 9. On the first day of the ASK Automotive IPO subscription, the response was largely lacklustre; 38% of the issue was booked, while 56% of the retail portion, 41% of the NII portion, and 3% of the Qualified Institutional Buyers (QIB) portion were subscribed. The ASK Automotive IPO hopes to sail through as the second day of subscriptions goes a little more smoothly.
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ASK Automotive IPO Subscription Status on day 2
On day 2, ASK Automotive IPO was subscribed 1.34 times. ASK IPO retail investors portion has been fully subscribed 1.68 times, NII portion was subscribed 2.27 times, and Qualified Institutional Buyers (QIB) portion was booked 6%.
ASK IPO has received bids for 2,78,33,109 shares against 2,06,99,974 shares on offer, according to data from the BSE.
ASK Automotive IPO details
The total offer size of up to 29,571,390 equity shares with a face value of ₹2 each is being offered by Kuldip Singh Rathee up to 20,699,973 equity shares and Vijay Rathee (promoter selling stockholders) up to 8,871,417 equity shares.
ASK Automotive IPO price band has been fixed in the range of ₹268 to ₹282 per equity share of face value of ₹2. ASK Automotive IPO lot size is 53 equity shares and in multiples of 53 equity shares thereafter.
The offer's book running lead managers are JM Financial Limited, Axis Capital Limited, ICICI Securities Limited, and IIFL Securities Limited. Link Intime India Private Ltd is the registrar for the issue.
ASK Automotive IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
ASK Automotive accumulated over ₹250 crore from anchor investors.
ASK Automotive IPO GMP today
ASK Automotive IPO GMP today or grey market premium is +54. This indicates ASK Automotive share price were trading at a premium of ₹54 in the grey market on Wednesday, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ASK Automotive share price was indicated at ₹336 apiece, which is 19.15% higher than the IPO price of ₹282.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
ASK Automotive IPO review
Reliance Securities
The brokerage claims that ASK is run by a first-generation business owner with competent management, exhibiting rapid expansion and effective capital utilisation, giving it a competitive edge as it looks to expand over the coming years. With its extensive and careful vendor approval process of suppliers by OEMs, proprietary material formulations, technological prowess, and multiple product lines being developed for the 3W, 4W, and CV segments, ABS's primary business has high entry barriers that will boost its growth momentum going forward.
“Its ALS division is witnessing growth in ICE and EV segments by introducing value added solutions for customers and has a strong pipeline of new products for domestic and exports market to benefit from the growing the Indian automotive industry. 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,” the brokerage said.
Swastika Investmart Ltd
As a manufacturer of innovative braking systems and brake shoes, ASK holds a dominant market share of over 50%, according to the brokerage. Strong ties exist between the corporation and every leading two-wheeler manufacturer in the nation. Its manufacturing process is founded on innovation and technology, and its production model is strong. In terms of finances, the business has had good growth in its top-line figures and respectable profitability.
"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 45.63x, 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," the brokerage said.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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