AS Automotive Shares Debut at Premium on Stock Exchanges

AS Automotive Shares Debut at Premium on Stock Exchanges

VoM News Desk | November 15, 2023 | 11:55 AM IST | Breaking News | Follow on Google News

ASK Automotive Shares Debut at Premium on Stock Exchanges

ASK Automotive Shares Debut at Premium on Stock Exchanges

ASK Automotive, an automotive parts manufacturer, made a strong debut on the stock market on Wednesday. The company’s shares were listed on the National Stock Exchange (NSE) at ₹303.30 per share, marking a 7.55% premium over its issue price of ₹282. Similarly, on the Bombay Stock Exchange (BSE), ASK Automotive shares were listed at ₹304.90, slightly higher than on NSE.

IPO Price Band and Subscription Details

The initial public offering (IPO) of ASK Automotive had a price band set between ₹268 to ₹282 per share, each with a face value of ₹2. The IPO lot size was fixed at 53 equity shares and multiples thereafter. The IPO opened for subscription on November 7 and closed on November 9.

Strong Subscription Response

The IPO witnessed robust subscription, with the overall subscription status reaching 51.14 times. It garnered a particularly strong response from Qualified Institutional Buyers (QIBs) and Non-Institutional Buyers (NIIs), with the QIB portion subscribed 142.41 times and the NII portion 35.47 times. Retail investors also showed keen interest, with the retail portion subscribed 5.70 times.

ASK Automotive IPO Details

The total offer size comprised up to 29,571,390 equity shares, with Kuldip Singh Rathee offering up to 20,699,973 shares and Vijay Rathee up to 8,871,417 shares. JM Financial Limited, Axis Capital Limited, ICICI Securities Limited, and IIFL Securities Limited served as the book running lead managers for the offer, with Link Intime India Private Ltd as the registrar.

Peer Comparison and Grey Market Premium

As per its red herring prospectus (RHP), ASK Automotive’s peers in the market include Endurance Technologies Ltd, Uno Minda Ltd, Suprajit Engineering Ltd, and Bharat Forge Ltd, with varying Price-to-Earnings (P/E) ratios. The IPO’s grey market premium (GMP) was reported at +28, indicating a market readiness to pay a premium of ₹28 over the issue price. This suggested an estimated listing price of around ₹310 per share, approximately 9.93% higher than the IPO price.

Overall, the strong debut of ASK Automotive shares reflects investor confidence in the company and a positive outlook for the automotive parts manufacturing sector.

Disclaimer: The opinions and suggestions provided in this article are those of individual analysts and do not reflect the viewpoints of VoM News. We encourage investors to consult with certified experts before making any investment choices.

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VoM News Desk

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