Ask Automotive is into Automobile Auto-Component and is looking raise funds through Offer For Sale
Ask Automotive IPO: ASK Automotive Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 2 per share via initial public offering.
Initial Public Offer comprising of a Offer for Sale of 29,571,390 Equity Shares.. JM Financial, Axis Capital, ICICI Securities, IIFL Securities have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime (India) Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.
Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Equity Shares offer-for-sale (OFS) of up to 29,571,390 equity shares by Kuldip Singh Rathee (Promoter) and Vijay Rathee (Promoter) who will offload upto 20,699,973 Equity Shares and 8,871,417Equity Shares respectively...
Objects of the issue:
As this issue is Offer for Sale hence company will not receive any proceeds from the Offer. Objects being Listing benefits..
Promoters of Ask Automotive are Kuldip Singh Rathee and Vijay Rathee and holds 100% stake in the company.
About Company:
Established in 1988, Ask Automotive is primarily into auto-component and operate 15 manufacturing facilities across five states in India. It supply safety systems and critical engineering solutions with in-house designing, developing and manufacturing capabilities. Company is powertrain agnostic, catering to electric vehicle (“EV”) as well as internal combustion engine (“ICE”) original equipment manufacturers (“OEMs”). Current product offerings are (i) advanced braking (“AB”) systems; (ii) aluminium lightweighting precision (“ALP”) solutions; (iii) wheel assembly to 2W OEMs; and (iv) safety control cables (“SCC”) products.
Key industries that company supply its products are (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.
Company's cients includes Hero MotoCorp, Honda Motorcycle, Bajaj, India Yamaha, TVS, Suzuki Motorcycles etc. EV Clients include TVS Motor Company Limited (“TVS”), Ather Energy Private Limited (“Ather”), Hero MotoCorp Limited (“Hero MotoCorp”), Greaves Electric Mobility Private Limited (“Greaves”), Bajaj Auto Limited (“Bajaj”) and Revolt Intellicorp Private Limited (“Revolt”)
About Industry:
India is the largest motorized 2W market in the world, with domestic sales of 13.73 million units in Fiscal 2022. (Source: CRISIL Report)The 2W segment constitutes ~77% of the total market comprising 2Ws, 3Ws, PVs,and CVs by volume; and ~13% in value terms (~₹642 billion). (Source: CRISIL Report)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 10%-12% between Fiscal 2022 and Fiscal 2027, compared with 13.7% between Fiscal 2017 and Fiscal 2022. (Source: CRISIL Report) Furthermore, EVs are gaining in India and are growing faster than ICE vehicles across the 2W, 3W and PV sectors. (Source: CRISIL Report) 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. (Source: CRISIL Report)
Source: SEBI, BSE, NSE, DRHP, Ask Automotive, Industry Data
Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.
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