ASK Automotive IPO subscribed 38 pc on first day of offer

New Delhi, Nov 7 (PTI) The Initial Public Offering (IPO) of auto ancillary player ASK Automotive received 38 per cent subscription on the first day of share sale on Tuesday.

The initial share sale received bids for 78,51,155 shares against 2,06,99,974 shares on offer, as per NSE data.

The portion for Retail Individual Investors (RIIs) was subscribed 56 per cent while the quota for non-institutional investors received 41 per cent subscription.

The category for Qualified Institutional Buyers (QIBs) got 3 per cent subscription.

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.

The issue has a price band of Rs 268-282 per equity share. At the upper end of the price band, the IPO is expected to fetch Rs 833.91 crore.

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. PTI SUM TRB