ASK Automotive, a leading player in the auto ancillary sector, has secured an impressive investment of over ₹250 crore from anchor investors just a day before the commencement of its initial public offering (IPO) on November 7. In a regulatory filing, the company revealed the names of the 25 investors who took part in the anchor book, along with 5 mutual funds that applied through 6 different schemes.
The IPO Committee of ASK Automotive, in collaboration with the Book Running Lead Managers to the Offer, concluded the allocation of 88,71,416 Equity Shares to Anchor Investors. These shares were allocated at an Anchor Investor allocation price of ₹282 per Equity Share, including a share premium of ₹280 per Equity Share.
Among the notable anchor investors in the list are esteemed names such as Goldman Sachs, Neuberger Berman Investment Funds and Emerging Markets Equity Trust, Morgan Stanley, Florida Retirement System, Copthall Mauritius Investment, BNP Paribas Arbitrage, Integrated Core Strategies, Societe Generale, and Edelweiss Trusteeship. Additionally, the anchor investors’ roster includes prominent entities like SBI Life Insurance Company, ICICI Prudential Life Insurance Company, ICICI Prudential Mutual Fund, Nippon Life India, Bajaj Allianz Life Insurance Company, Tata Mutual Fund, Canara Robeco Mutual Fund, and Abakkus Diversified Alpha Fund.
The ASK Automotive IPO subscription will commence on November 7, with an IPO price band set within the range of ₹268 to ₹282 per equity share, each having a face value of ₹2. This equates to a floor price that is 134 times the face value and a cap price that is 141 times the face value.
When assessing the price-to-earnings (P/E) ratio based on the diluted earnings per share for the fiscal year 2023, it stands at 43.37 times the floor price and 45.63 times the cap price. The IPO lot size for ASK Automotive is 53 equity shares and its multiples.
ASK Automotive Ltd specializes in advanced braking systems, precision solutions for manufacturing lightweight aluminum components, the assembly of wheels for two-wheeler original equipment manufacturers (OEMs), and the production of safety control cables. The company’s extensive service offerings cater to a diverse range of sectors, encompassing both the automotive and non-automotive industries.
The strong response from anchor investors underscores the market’s confidence in ASK Automotive and its growth potential, setting the stage for a promising IPO launch.