ASK Automotive Limited IPO consists of an offer for sale of 2.96 crore existing equity shares worth INR 843 crores. The company has mainly come up with an IPO to provide listing benefits to the existing shareholders and also to gain the benefits of listing.
ASK Automotive Limited IPO – Important Details
|ASK Automotive Limited IPO Date||November 7, 2023 to November 9, 2023|
|ASK Automotive Limited IPO Listing Date||November 20, 2023|
|ASK Automotive Limited IPO Price||INR 268-282 per share|
|ASK Automotive Limited IPO Lot Size||53 shares|
|ASK Automotive Limited IPO Total Issue Size||Approx INR 834 crores|
|ASK Automotive Limited IPO Basis of Allotment||November 15, 2023|
|ASK Automotive Limited IPO Initiation of Refunds||November 16, 2023|
|ASK Automotive Limited IPO Credit of Shares to Demat||November 17, 2023|
|ASK Automotive Limited IPO Issue Type||Book Built Issue IPO|
|ASK Automotive Limited IPO Listing At||BSE, NSE|
ASK Automotive Ltd IPO – Company Profile
Incorporated in 1988, ASK Automotive Limited manufactures advanced braking Systems for two-wheelers in India.
ASK Automotive Limited’s in-house design and engineering capabilities enable them to deliver complex precision components and solutions with a focus on quality and have allowed them to diversify their business in both the automotive and non-automotive sectors. The product range of the company includes (i) AB systems, (ii) aluminum lightweight precision (“ALP”), (iii) wheel assembly to 2W OEMs, and (iv) safety control cables (“SCC”). The company operates in India as well as overseas.
As of June 2023, the company has 15 manufacturing units spread across five states in India. ASK Automotive supplies Original Equipment Manufacturers like HMSI, HMCL, Suzuki, TVS, Yamaha, Bajaj, Royal Enfield, Denso, Magneti Marelli, and others. It also provides to the independent aftermarket and the export market through its manufacturing facilities in different parts of the country.
ASK Automotive Ltd IPO – Fundamental Analysis
ASK Automotive Ltd has shown strong revenue growth and improved profitability over the years. The increasing equity base and RoNW suggest a healthy financial position. However, potential investors should carefully consider the rising debt levels and assess the reasons behind this increase.
ASK Automotive Ltd has demonstrated consistent revenue growth over the years. Revenue increased from ₹15,439.92 million in 2021 to ₹25,551.67 million in 2023, indicating a positive trend.
Equity and Liabilities:
The company’s equity has also been growing steadily, from ₹6,222.25 million in 2021 to ₹6,437.71 million in 2023. Total liabilities have increased as well, but the equity base remains strong.
Profit after tax increased from ₹1,062.01 million in 2021 to ₹1,229.53 million in 2023. While there was a dip in profitability in 2022, the company recovered and showed improved profitability in 2023.
Return on Net Worth (RoNW):
The RoNW increased from 17.07% in 2021 to 19.10% in 2023. This indicates that the company generates a higher return on its shareholders’ equity.
Earnings per Share (EPS):
The diluted EPS grew from ₹5.22 in 2021 to ₹6.18 in 2023. This shows an improvement in earnings per share.
Debt to Equity Ratio:
The debt-to-equity ratio increased from 0.13 times in 2021 to 0.49 times in 2023. While this indicates a higher level of debt, it’s important to note that the company might be using debt to finance its growth.
ASK Automotive Ltd IPO Financial Information
|Particular||As at 31 March 2021||As at 31 March 2022||As at 31 March 2023|
|Equity(₹ in millions)||6,222.25||6,319.08||6,437.71|
|Expenses (₹in millions)||14,203.99||19,059.94||23,906.29|
|Profit and Loss After Tax (₹ in millions)||1,062.01||826.59||1,229.53|
|Diluted EPS only (₹)||5.22||4.09||6.18|
|NAV per Equity Share (₹)||30.58||31.46||32.66|
|Total Assets (in millions)||9,482.53||11,055.63||12,812.08|
|Total Liabilities (in millions)||3,260.28||4,736.55||6,374.37|
|Debt to Equity Ratio||0.13 times||0.25 times||0.49 times|
ASK Automotive Limited IPO Peer Comparison
ASK Automotive Limited’s revenue stands at ₹25,551.67 million with a strong RoNW of 19.10% and an EPS of ₹6.18. It outperforms its peers, including Endurance Technology, Uno Minda, Suprajit Engineering, and Bharat Forge, in terms of profitability and EPS. However, it has a lower P/E ratio compared to some peers.
|Company||Revenue (₹ in million)||Face Value per Equity Share (₹)||P/E||EPS (Basic) (₹)||EPS (Diluted) (₹)||RoNW (%)||NAV per Equity Share (Basic) (₹)|
|ASK Automotive Limited||25,551.67||2||NA||6.18||6.18||19.10%||32.66|
|Endurance Technology Limited||88,040.46||10||46.36||34.09||34.09||10.87%||313.67|
|Uno Minda Limited||1,12,364.90||2||52.59||11.42||11.37||15.73%||72.53|
|Suprajit Engineering Limited||27,523.55||1||35.49||10.99||10.98||12.42%||88.48|
|Bharat Forge Limited||1,29,102.59||2||98.86||11.35||11.35||7.88%||144.02|
ASK Automotive Limited IPO Objective
ASK Automotive Limited’s objective is to make an offer for sale of 29,571,390 equity shares and list these shares on stock exchanges for increased visibility and brand enhancement in the financial markets.
ASK Automotive IPO Risks And Challenges
ASK Automotive Limited relies on manufacturing facilities in Haryana, primarily producing disc brake pads and safety control cables. Any disruptions in Haryana could harm their business, as 80% of their revenue comes from the Indian 2-wheeler automotive sector, which is influenced by social and economic factors like demographics, employment, affordability, and trends.
- ASK Automotive Limited’s manufacturing facilities are concentrated in Haryana, and certain products (disc brake pads and safety control cables) are manufactured only at their manufacturing facilities in Haryana. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions. In Haryana, it could have an adverse effect on their business, results of operations, future cash flows, and financial condition.
- Almost 80% of the company’s revenue is dependent on the 2-wheeler automotive sector. The performance of the Indian 2W automotive sector is dependent on numerous social and economic factors, including demographic trends and preferences, employment and income levels, affordability of 2W vehicle customers, and changes.
ASK Automotive IPO – Industry & Market Potential
Household demand is holding up this fiscal year, helped by services catch-up and government capital expenditure: Consumer spending is growing in pockets for some goods and services. Passenger vehicle (“PV”) sales have doubled since May 2022. The festive season especially augured well for consumer spending after two years of subdued celebrations due to the COVID-19 pandemic.
The industry grew in Fiscal 2023 due to healthy pent-up demand created by two years of slump in sales volumes owing to a pandemic-induced disrupted supply chain. In Fiscal 2023, the 2W industry recorded a growth of 18.7%, whereas 3Ws, PVs, and CVs grew by 87.8%, 26.8%, and 34.5%year-on-year, respectively. Electric vehicles (“EVs”) are gaining in India and are growing faster than internal combustion engine (“ICE”) vehicles across the 2W, 3W, and four-wheeler (“4W”) sectors.
ASK Automotive Limited IPO – Type of Offer
ASK Automotive is coming up with an offer to sell 2.96 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
|Name of the promoter selling shareholder||Maximum number of offered shares for sale|
|Kuldip Singh Rathee||2,06,99,973|
ASK Automotive Limited IPO Offer Size
ASK Automotive Limited is launching an initial public offering (IPO) worth INR 834 crores, involving the sale of 2.96 crore existing equity shares valued at INR 843 crores. The primary purpose of this IPO is to offer listing advantages to current shareholders and to leverage the benefits of being publicly listed.
ASK Automotive Limited IPO Allotment Structure
ASK Automotive Limited’s IPO allocation designates 50% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 35% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for an ASK Automotive IPO?
To apply for the ASK Automotive Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the ASK Automotive Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the ASK Automotive Limited’s IPO at Alice Blue[M1] in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check ASK Automotive Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the ASK Automotive Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the ASK Automotive Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the ASK Automotive Limited IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the ASK Automotive Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
ASK Automotive IPO Offer Registrar
The registrar for the ASK Automotive Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Tel: +91 810 811 4949
E-mail: [email protected]
ASK Automotive Limited IPO FAQs
1. What is the allotment date of the ASK Automotive Limited IPO?
The allotment date is November 15, 2023.
2. What is the price band of the ASK Automotive Limited IPO?
The price band of the shares issued by the company is INR 268-282 per share.
3. What is the size of the ASK Automotive Limited IPO?
‘ASK Automotive Limited’ is launching an IPO. This offering comprises an offer to sell 2.96 crores worth INR 834 crores.
4. What is the listing date of the ASK Automotive Limited IPO?
The listing date is November 20, 2023.