ASK Automotive Limited

About ASK Automotive Limited Incorporated in 1988, ASK Automotive Limited is India’s largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers. Other than brakes, it is involved in the design, development and manufacturing of aluminium lightweight precision (ALP) solutions, wheel assembly for OEMs, and safety control cables (SCC) products. These products are used in the automotive sector for two-wheelers, three-wheelers, passenger vehicles and commercial vehicles and cater to the electric vehicle (EV) and internal combustion engine (ICE) OEMs. They are also used in the non-automotive sector for all-terrain vehicles, power tools and outdoor equipment. In FY23, the company had a market share of approximately 50% in terms of the production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket (IAM). As of 30 June 2023, the company operates 15 manufacturing facilities located in five states in India in close proximity to OEM customers. One new manufacturing facility became operational in July 2023 in Rajasthan and another one is proposed to be developed in Karnataka. It supplies its products to all of the top six two-wheeler manufacturers in India, including TVS, Ather, Hero MotoCorp, Greaves, Bajaj Auto and Revolt. It also caters to overseas customers like UFI Filters, Federal-Mogul, FDP Virginia Inc., Stanley Black & Decker, Polaris and MTD Products. Between FY21 and FY23, the company saw a CAGR rise of 18% in its revenue from operations and 5% in its profit. Moreover, its products are supplied to top automakers in India, which is the largest 2W market in the world, with domestic sales of 16.25 million units in FY23. All of this could be beneficial for the company. And now, ASK Automotive Limited is coming out with its initial public offer (IPO). The entire IPO will be an offer for sale. The money raised through this IPO will be received by the selling shareholders. Its shares will be listed on the NSE and the BSE. Here are key details about the ASK Automotive IPO: Company Name ASK Automotive Limited Limited Company Type Private Company Established On 1988 ASK Automotive Limited IPO Opening Date 7th November 2023 ASK Automotive Limited IPO Closing Date 9th November 2023 ASK Automotive Limited IPO Allotment Status 13th November 2023 Credit of Shares to the Demat Account 14th November 2023 ASK Automotive Limited IPO Listing Date 15th November 2023 ASK Automotive Limited IPO Face Value ₹2 per share ASK Automotive Limited IPO Lot Size 53 shares ASK Automotive Limited IPO Issue Size Approx ₹ 834 crore ASK Automotive Limited IPO to be Listed on BSE, NSE ASK Automotive Limited IPO Price band ₹ 268 - ₹ 282 per share Financial snapshot Particulars FY21 FY22 FY23 Q1FY24 Revenue ₹ 1,543 crore ₹ 2,013 crore ₹ 2,555 crore ₹ 656 crore Net Profit/Loss ₹ 106 crore ₹ 82.6 crore ₹ 122 crore ₹ 34.8 crore Here’s a quick look at ASK Automotive Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis) Strengths and opportunities Operates in an industry with high barriers to entry as the development of braking systems requires technological prowess and R&D. Operates as a supplier to the 2W market in India, which constituted approximately 76% by production volume of the total Indian automotive market in FY23. Long-standing customer relationships of more than 16 years with two-wheeler automakers in India. Holds a portfolio of 52 proprietary formulations used in the production of AB systems as of 30 June 2023. Robust production model driven by research and development comprising 365 engineering graduates as of 30 June 2023. Develops and offers customised systems and solutions for customers in both the ICE and EV sectors. EBITDA of ₹210 crore, ₹182 crore and ₹247 crore in FY21, FY22 and FY23 respectively. Risks and threats Derives a significant portion of its revenue from the 2W automotive sector, accounting for 90% of the total revenue from operations in FY23. Meanwhile, its top three customers contribute 60% of its total revenue. Manufacturing facilities are concentrated in the state of Haryana and certain products are manufactured only at the manufacturing facilities in Haryana. Operates a capital-intensive business with a total capital expenditure of ₹166 crore in FY23. May be subject to industrial unrest, slowdowns and increased employee costs. Has incurred significant indebtedness with total outstanding borrowings amassing to ₹318 crore as of 31 March 2023. ASK Automotive Limited IPO details |ASK Automotive Limited IPO date According to the offer document filed by the company with the SEBI, the ASK Automotive IPO’s opening date – in other words, the ASK Automotive IPO launch date – will be 7th November 2023. The ASK Automotive IPO closing date is 9th November 2023. After this, investors will be updated about the allotment status on 15th November 2023. Investors, who have been allotted shares, can expect them to be credited to their demat account on 17th November 2023. The ASK Automotive IPO listing date is 20th November 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. |ASK Automotive Limited IPO Price Band The entire IPO is an offer for sale. The ASK Automotive IPO price band has been set between ₹268 and ₹282 per share. Interested investors can choose a price within this band to apply for the IPO. The ASK Automotive IPO listing price will be determined on 20th November 2023. The listing price is the price at which a company’s shares debut on the stock exchanges. |ASK Automotive Limited IPO Lot size The ASK Automotive IPO details have been declared. The ASK Automotive IPO lot size is set at 53 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the ASK Automotive IPO issue size is approx ₹834 crore. How to pre-apply for the ASK Automotive Limited IPO? You can pre-apply for the ASK Automotive Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘ASK Automotive Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Pre-Apply’ Accept the mandate on your UPI app How to apply for the ASK Automotive Limited IPO? If you are interested in this investment opportunity but unsure how to apply for the ASK Automotive Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the ASK Automotive Limited IPO on Upstox: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘ASK Automotive Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Apply’ Accept the mandate on your UPI app How to check the ASK Automotive LimitedIPO allotment status? When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the ASK Automotive Limited IPO allotment status: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover page, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, you will find the ‘View all’ option Once you click on ‘View all’, you will be directed to the ‘IPO’ tab In the ‘IPO’ tab, click on ‘My applications’ In ‘My applications’, under the History section, your ASK Automotive Limited IPO allotment status will be mentioned Check Allotment Status Open a demat account with Upstox to apply for the ASK Automotive Limited IPO To apply for the ASK Automotive Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: Click here to visit the demat account opening page on the Upstox website. Enter your phone number and other essential details to begin opening a demat account. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? Open Demat Account Upstox – trading app to apply for the ASK Automotive Limited IPO Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the ASK Automotive Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.