The IPO of Ahmedabad-based ASK Automotive received a strong response from all category investors as it closed with 51.14 times subscription.
The ₹834-crore initial public offering of ASK Automotive Ltd came out with a price band of ₹268-282. The entire issue was offer-for-sale by promoters Kuldip Singh Rathee and Vijay Rathee.
While non-institution portion was subscribed 35.47 times, quota of retail investors received bids for 5.70 times. Qualified institutions were more aggressive as their portion was subscribed by 142.41 times.
Ahead of the issue, ASK Automotive raised ₹250.17 crore from 25 anchor investors including marquee names such as Morgan Stanley, Goldman Sachs, Neuberger Berman, Florida Retirement System, Integrated Core Strategies, BNP Paribas Arbitrage, Societe Generale, and Copthall Mauritius Investment. Domestic institutions such as Nippon Life India, ICICI Prudential Mutual Fund, SBI Life Insurance Company, Tata Mutual Fund, ICICI Prudential Life Insurance Company, Canara Robeco Mutual Fund, Abakkus Diversified Alpha Fund, Edelweiss Trusteeship, and Bajaj Allianz Life Insurance Company also participated in the anchor book.
Anchor investors were allotted 88.71 lakh shares at ₹282 a share.
Auto, non-auto supplies
ASK Automotive has 15 manufacturing facilities across five states and the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India, also specialises in aluminium light-weighting precision solutions, wheel assembly, and safety control cables products, serving both the automotive and non-automotive sectors. ASK Automotive supplies to 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 located in different parts of the country.
The offer’s book running lead managers were JM Financial Ltd, Axis Capital Ltd, ICICI Securities Ltd and IIFL Securities. Link Intime India Private Ltd was the registrar for the issue.