ASK Automotive IPO: The initial public offering (IPO) of ASK Automotive is witnessing the final day of bidding today, November 9. The IPO, which opened for public subscription on November 7, was subscribed 1.34 times on the second day of bidding on Wednesday. On Thursday till 11:21 am, the IPO has been subscribed 2.49 times, receiving bids for 5,14,75,932 shares against 2,06,99,974 shares on offer.
The category for non-institutional investors got subscribed 5.73 times while the quota for retail individual investors (RIIs) was subscribed 2.48 times subscription. The qualified institutional buyers (QIBs) portion subscribed 0.07 per cent.
ASK Automotive IPO GMP Today
According to market observers, unlisted shares of ASK Automotive were trading Rs 50 higher in the grey market as compared to its issue price. The Rs 50 grey market premium or GMP is about 17.73 per cent higher than its upper issue price of Rs 282 per share. This means the grey market is expecting a 17.73 per cent listing gain from the public issue.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
About ASK Automotive IPO
The IPO is an Offer For Sale (OFS) of 2,95,71,390 equity shares by promoters — Kuldip Singh Rathee and Vijay Rathee.
Since the IPO is completely an OFS, the entire proceeds will go to shareholders divesting their shares.
ASK Automotive IPO price band is set at Rs 268-Rs 282 per share. The minimum lot size for an application is 53 shares. The minimum amount of investment required by retail investors is Rs 14,946.
ASK Automotive on Monday said it has mobilised a little over Rs 250 crore from anchor investors. Gurugram-based ASK Automotive is one of the largest manufacturers of brake-shoe and advanced braking systems for two-wheelers in India with a market share of about 50 per cent in the 2022 fiscal.
The firm 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.
JM Financial Ltd, Axis Capital Ltd, ICICI Securities Ltd and IIFL Securities Ltd are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and the NSE.
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