The initial public offering (IPO) of ASK Automotive, which launched on November 7, has been oversubscribed by 1.85 times on the final day of the offer today. The company sought to raise ₹834 crore by offering 2.95 crore shares via an offer-for-sale by promoters Kuldip Singh Rathee and Vijay Rathee.
Retail investors and Non-Institutional Investors (NII) bid more than their quotas for the shares, which were offered at a price range of ₹268-282. However, Qualified Institutional Buyers (QIB) subscribed less than their dedicated portion. In total, the company received bids for 3.83 crore shares against an issue size of 2.06 crore shares.
Prior to the IPO, ASK Automotive secured ₹250.20 crore from 25 anchor investors, including Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS). The auto parts manufacturer reported strong financial performance in FY23 with revenue reaching ₹2,555 crore, marking a growth of 27%. Its profit after tax in the same period stood at ₹123 crore (INR100 crore = approx. USD12 million).
Analysts have suggested subscribing to the IPO given ASK Automotive's robust financials, expansion plans, and fair valuation. The company is also expected to benefit significantly from the ongoing electric vehicle revolution.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.