ASK Automotive Ltd., a leading Indian brake-shoe manufacturer, celebrated its successful debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) Today. The company, which commands a significant 50% market share in the financial year 2023, launched its shares at a notable premium, reflecting robust investor confidence.
The initial public offering (IPO) of ASK Automotive was met with substantial demand, closing with an oversubscription of 51.14 times. The shares opened on the BSE at ₹304.90, marking an 8.12% increase over the IPO price, and on the NSE at ₹303.30, up by 7.55%. The enthusiasm was led by institutional investors who subscribed to the IPO 142.41 times. Non-institutional investors followed with a subscription rate of 35.47 times, while retail investors participated at a rate of 5.70 times.
The Gurugram-based company's IPO raised ₹834 crore (INR100 crore = approx. USD12 million) and was structured as an offer for sale by promoters Kuldip Singh Rathee and Vijay Rathee. This structure meant that all proceeds from the sale would go directly to the selling shareholders, without allocating any capital to ASK Automotive itself. Consequently, the promoters' shareholding post-IPO has been reduced to approximately 85%.
Investors have shown their trust in ASK Automotive's market position and future prospects by their willingness to invest at a premium right from the launch. The company's strong foothold in the automotive component sector is evident from its impressive market share and has now been mirrored in its stock market entry performance.
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