ASK Automotive Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹282
Per ShareLot Size
53 Shares
Minimum Investment
₹14,946
Issue Size
₹833.91 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
ASK Automotive Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
90.2%
Promoter Holding (Post-Issue)
75.2%
Issue Type
Book Building
ISIN
INE491J01022
About the Company
ASK Automotive Limited supplies safety systems and critical engineering solutions with in-house designing, developing and manufacturing capabilities. Its offerings are powertrain agnostic, catering to electric vehicle ("EV") as well as internal combustion engine ("ICE") original equipment manufacturers ("OEMs"). The Company commenced its operations in 1989 by manufacturing brake shoe products for two-wheelers ("2Ws") and have since diversified its operations to include offerings such as: (i) advanced braking ("AB") systems; (ii) aluminium lightweighting precision ("ALP") solutions; (iii) wheel assembly to 2W OEMs; and (iv) safety control cables ("SCC") products, that it supplies in (i) the automotive sector for 2Ws, three wheelers ("3Ws"), passenger vehicles ("PVs") and commercial vehicles ("CVs"), and (ii) the non-automotive sector for all-terrain vehicles ("ATVs"), power tools and outdoor equipment.
Industry Overview
India is the largest motorized two-wheeler market in the world, with domestic sales of 16.25 million units in Fiscal 2023 (Source: CRISIL Report). It constitutes approximately 76% of the total market comprising two-wheelers ("2Ws"), three-wheelers ("3Ws"), passenger vehicles ("PVs") and commercial vehicles by volume; and approximately 16% in value terms (approximately Rs.1,056 billion). Furthermore, India is also one of the largest exporters of 2Ws in the world. (Source: CRISIL Report) CRISIL MI&A expects 2W exports from India to record a CAGR of 5%-7% between Fiscal 2023 and Fiscal 2028, compared to 5.3% between Fiscal 2018 and Fiscal 2023. Furthermore, electronic vehicles ("EVs") are gaining in India and are growing faster than internal combustion engine ("ICE") vehicles across the 2W, 3W and fourwheeler sectors. In the non-automotive sector, infrastructural growth, especially in emerging economies such as China and India, is a major driver of the power tools market globally.
Company History
ASK Automotive Limited was incorporated on January 18, 1988 as a private limited company under the Companies Act, 1956, with the name "ASK Automotive Private Limited", pursuant to a certificate of incorporation granted by the Registrar of Companies, Delhi and Haryana("RoC"). Upon the conversion of the Company into a public limited company, pursuant to resolutionspassed by its Board of Directors on December 7, 2022 and its Shareholders on December 7, 2022 the name of the Company was changed to "ASK Automotive Limited" and a fresh certificate of incorporation dated January 6, 2023 was issued by the RoC.
Products & Services
- ASK Automotive Limited supplies safety systems and critical engineering solutions with in-house designing, developing and manufacturing capabilities.
Growth Strategy
- "Electrification"-further strengthen our position in the growing EV sector in India.
- Continue to focus on our design,R&Dand engineering capabilities to develop innovative systems and solutions, as well as improveour manufacturing efficiencies.
- Further diversify our product offeringsin the AB systems and ALP solutions categories and expand our addressable market.
- Leverage export opportunities and enter new markets.
- Increased focus on IAMs alesand spares.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 29,571,390* equity shares of face value of Rs. 2 each ("Equity Shares") of ASK Automotive Limited ("The Company" or the "Issuer") for cash at a price of Rs. 282 per equity share of face value of Rs. 2 ("Offer Price") aggregating to Rs. 833.91 crores, comprising an offer for sale of 20,699,973* equity shares of face value of Rs. 2 aggregating to Rs. 583.74 crores by Kuldip Singh Rathee and 8,871,417* equity shares of face value of Rs. 2 aggregating to Rs. 250.17 crores by Vijay Rathee ("Promoter Selling Shareholders") (the "Offer for Sale" or the "Offer"). The offer shall constitute 15.00% of the post-offer paid-up equity share capital of the company. The face value of the equity share is Rs. 2 each. The offer price is 141 times the face value of the equity shares. *Subject to finalization of basis of allotment.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Well established manufacturer of safety systems and critical engineering solutions for some of India's largest OEMs in an industry with high entry barriers.
- Robust production model driven by research and development ("R&D") and design with an emphasis on: (i) advanced material knowledge to customize systems and products based on customer specifications and (ii) engineering lighter precision products.
- Technology and innovation-driven manufacturing process, with an extensive suite of systems and solutions for EV and ICE sectors.
- Long-standing customer relationships with both Indian and global OEM players.
- Financial and return metrics demonstrating growth and efficient use of capital.
- A significant portion (more than 80%) of its revenue from operations in each of the last three Fiscals is attributable to the Indian two-wheeler automotive sector. Any adverse changes in the two-wheeler automotive sector could adversely impact its business, results of operations and financial condition.
- The company is dependent on its top three customers who contribute more than 50.00% of its revenue from operations with it single largest customer contributing more than 30.00% of its revenue from operations in each of the last three Fiscals. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
- The company's business and profitability is substantially dependent on the availability and cost of its raw materials, including Aluminium, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact its business, results of operations and financial condition.
- The company depends on third parties for the supply of raw materials and do not have firm commitments for supply or exclusive arrangements with any of its suppliers. Loss of suppliers may have an adverse effect on the company business, results of operations and financial condition.
- The company may not be successful in implementing its growth strategies, particularly increasing the company market share in the evolving electric vehicle market, which could have an adverse effect on its business, financial condition, cash flows and results of operations.