ASK Automotive Ltd's shares on Wednesday listed on the bourses with a premium of more than 8 per cent against the issue price of Rs 282. The stock made its debut at Rs 304.90, registering a gain of 8.12 per cent from the issue price on the BSE. The stock further rallied 10.54 per cent to Rs 311.75. On the NSE, it listed at Rs 303.30, a rise of 7.55 per cent.
The Initial Public Offering (IPO) of ASK Automotive was subscribed 51.14 times on the last day of subscription on Thursday, with heavy participation coming in from institutional buyers. The Rs 833.91 crore initial share sale had a price band of Rs 268-282 per equity share.
According to exchange reports, the offer received a good response from investors, with the issue getting booked 51.14 times and receiving bids for 105.85 crore shares against the issue size of 2.06 crore shares. Since the offer was entirely an offer-for-sale (OFS) of 2.95 crore shares, the entire issue proceeds will go to the selling shareholders and the company will not get any money from the offer.
Retail investors bid 5.7 times and non-institutional investors (NII) 35.47 times the portions set aside for them. QIBs picked 142.41 times their allotted quota.
The Gurugram-based firm's market valuation stood at Rs 6,022.71 crore. The promoters of the company are Kuldip Singh Rathee and Vijay Rathee.
ASK Automotive is the largest maker of brakeshoe and advanced braking systems for two-wheelers in India. The company holds a market share of about 50 per cent in fiscal 2023 in terms of production volume for OEM and the branded independent aftermarket (IAM), on a combined basis. It supplies safety systems and critical engineering solutions with in-house designing, developing, and manufacturing capabilities.
The company has clients, including TVS Motor Company Ltd, Hero MotoCorp, Greaves Electric Mobility and Bajaj Auto.