Upcoming IPO - ASK Automotive Limited

About Company’s Business:

They provide safety systems and critical engineering solutions, utilizing their in-house design, development, and manufacturing capabilities. Their product range is suitable for both electric vehicle (EV) and internal combustion engine (ICE) original equipment manufacturers (OEMs). Their journey began in 1989 with the production of brake shoe products for two-wheelers (2Ws). Over time, they have expanded their offerings to include advanced braking (AB) systems, aluminum lightweighting precision (ALP) solutions, wheel assembly for 2W OEMs, and safety control cables (SCC) products. These products are supplied to the automotive sector, serving 2Ws, three-wheelers (3Ws), passenger vehicles (PVs), and commercial vehicles (CVs), as well as the non-automotive sector, which includes all-terrain vehicles (ATVs), power tools, and outdoor equipment.

About the Industry:

India stands as the world’s largest market for motorized two-wheelers, witnessing domestic sales of 16.25 million units during Fiscal 2023, as reported by CRISIL. This accounts for roughly 76% of the overall market encompassing two-wheelers (2Ws), three-wheelers (3Ws), passenger vehicles (PVs), and commercial vehicles in terms of volume, and approximately 16% in terms of value, approximately amounting to ₹1,056 billion. India also ranks among the leading exporters of two-wheelers globally, according to CRISIL. The CRISIL MI&A report anticipates a compound annual growth rate (CAGR) of 5%-7% in 2W exports from India between Fiscal 2023 and Fiscal 2028, a notable increase compared to the 5.3% CAGR observed between Fiscal 2018 and Fiscal 2023.Furthermore, there is a rising trend of electronic vehicles (EVs) in India, and they are experiencing faster growth compared to internal combustion engine (ICE) vehicles in the segments of two-wheelers (2W), three-wheelers (3W), and four-wheelers, according to the CRISIL report. In the non-automotive sector, the global power tools market is being driven by infrastructure development, particularly in emerging economies like China and India, as highlighted in the CRISIL report.

Key Financial Information (₹ in million):

Here’s the financial information presented in a tabulated format, as per the specified periods and in Indian Rupees (₹ million):

Particulars As of June 30, 2023 As of June 30, 2022 As of March 31, 2023 As of March 31, 2022 As of March 31, 2021
Equity share capital 394.29 401.79 394.29 401.79 406.89
Total Equity 6,784.61 6,543.71 6,437.71 6,319.08 6,222.25
Revenue from operations 6,565.08 6,037.35 25,551.67 20,130.83 15,439.92
Profit after tax for the period/year 348.29 225.54 1,229.53 826.59 1,062.01
Earnings per Equity Share - Basic(1)(2)* 1.77 1.12 6.18 4.09 5.22
Earnings per Equity Share - Diluted(1)(2)* 1.77 1.12 6.18 4.09 5.22
Net Asset Value per Equity Share(3) 34.41 32.57 32.66 31.46 30.58
Total borrowings(4) 3,868.38 1,684.73 3,180.11 1,597.93 798.94

*Note: Earnings per Equity Share are not annualized for the three-month periods ending June 30, 2023, and June 30, 2022.

Objective of the Issue:

  1. To carry out the Offer for Sale of up to 29,571,390 Equity Shares of face value of ₹ 2 each by the Promoter Selling Shareholders.

  2. To achieve the benefits of listing the Equity Shares of face value of ₹ 2 each on the Stock Exchanges.

  3. General corporate purposes.

For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.

Important information regarding the IPO
Open Date Tuesday, November 7, 2023
Close Date Thursday, November 9, 2023
Issue Size ₹834.00 Crores
Price ₹268 to ₹282 per share
Lot Size 53 Shares
Basis of Allotment Wednesday, November 15, 2023
Initiation of Refunds Thursday, November 16, 2023
Credit of Shares to Demat Friday, November 17, 2023
Listing Date Monday, November 20, 2023

How to apply for this IPO?

You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.

Quick Apply for the IPO here!

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