ASK Automotive
Book Building issueMainboard₹834 Cr issue
+8.12%
Listing gain over issue price
Issue size
₹834 Cr
1 lot at cut-off
₹14,946
Lot size
53shares
Open
07 Nov 2023
Close
09 Nov 2023
Allotment
10 Nov 2023
Listing
15 Nov 2023
Listing performance
Issue price
₹282
Listed at
₹304.90
Listing-day close
₹310.20
Latest price
₹550.75
Close on 23 Oct 2026
Listing gain
+8.12%
Return since issue
+95.30%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Nov 2023 – 09 Nov 2023
- Listing date
- 15 Nov 2023
- Face value
- ₹2 per share
- Issue price
- ₹282 per share
- Lot size
- 53 shares
- Issue type
- Book Building issue
- Total issue size
- ₹834 Cr
- Market cap at offer price
- ₹5,559 Cr
- Promoter holding
- 100.00% → 85.00% pre-issue → post-issue
- ISIN
- INE491J01022
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- JM Financial Ltd.
- Registered office
- Flat No.104, 929/1, Naiwala, Faiz Road, Karol Bagh, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 88,71,416 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 53 shares per lot, in multiples, at ₹282
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 53 | ₹14,946 |
| Retail (max) | 13 | 689 | ₹1,94,298 |
| S-HNI (min) | 14 | 742 | ₹2,09,244 |
| S-HNI (max) | 66 | 3,498 | ₹9,86,436 |
| B-HNI (min) | 67 | 3,551 | ₹10,01,382 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
88,71,416
Anchor portion
₹250 Cr
at ₹282 per share
Valuation and performance
Valuation at offer price
₹282 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.18 | — |
| P/E (×) | 45.63 | — |
| Market cap | — | ₹5,559 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 19.10%
- Debt / equity
- 0.49
- PAT margin
- 4.79%
- NAV per share
- ₹32.66
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About ASK Automotive
ASK Automotive Limited, incorporated on January 18, 1988 as a private limited company and converted to public limited company on December 7, 2022, is an automotive systems supplier with in-house designing, developing and manufacturing capabilities. The company commenced operations in 1989 manufacturing brake shoe products for two-wheelers and has since diversified into advanced braking systems, aluminium lightweighting precision solutions, wheel assembly, and safety control cables. It supplies to original equipment manufacturers (OEMs) and the independent aftermarket across automotive (2Ws, 3Ws, PVs, CVs) and non-automotive sectors (ATVs, power tools, outdoor equipment). Revenue from operations grew from ₹15,439.92 million in Fiscal 2021 to ₹25,551.67 million in Fiscal 2023, with the 2W automotive sector contributing more than 80% of revenues across all periods.
Company Analysis
from RHPASK Automotive Limited manufactures advanced braking systems, aluminium lightweighting precision solutions, wheel assemblies, and safety control cables for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and non-automotive sectors.
ASK Automotive Limited, incorporated on January 18, 1988 as a private limited company and converted to public limited company on December 7, 2022, is an automotive systems supplier with in-house designing, developing and manufacturing capabilities. The company commenced operations in 1989 manufacturing brake shoe products for two-wheelers and has since diversified into advanced braking systems, aluminium lightweighting precision solutions, wheel assembly, and safety control cables. It supplies to original equipment manufacturers (OEMs) and the independent aftermarket across automotive (2Ws, 3Ws, PVs, CVs) and non-automotive sectors (ATVs, power tools, outdoor equipment). Revenue from operations grew from ₹15,439.92 million in Fiscal 2021 to ₹25,551.67 million in Fiscal 2023, with the 2W automotive sector contributing more than 80% of revenues across all periods.
Automotive - Advanced braking systemsAutomotive - Aluminium lightweighting precision solutionsAutomotive - Wheel assembliesAutomotive - Safety control cablesTwo-wheeler automotiveThree-wheeler automotivePassenger vehicle automotiveCommercial vehicle automotiveNon-automotive - All-terrain vehiclesNon-automotive - Power tools
Objects of the Issue
- Carry out the Offer for Sale and achieve the benefits of listing the Equity Shares on the Stock Exchanges p.27
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.120
Issue Structure
- Total Issue
- Up to 29,571,390 Equity Shares of face value of ₹ 2 each aggregating up to ₹ [●] million
- Fresh Issue
- Not applicable
- Offer for Sale
- Up to 29,571,390 Equity Shares of face value of ₹ 2 each aggregating up to ₹ [●] million by Promoter Selling Shareholders (Kuldip Singh Rathee: up to 20,699,973 shares and Vijay Rathee: up to 8,871,417 shares)
- Price Band
- [●] per Equity Share of face value of ₹ 2 each
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 2 each
Business Model
The company generates revenue through manufacturing and supplying automotive systems and components. Revenue is earned from: (i) advanced braking systems (₹10,672.27 million or 41.77% in Fiscal 2023); (ii) aluminium lightweighting precision solutions (₹9,931.65 million or 38.87% in Fiscal 2023); (iii) wheel assembly (₹3,513.98 million or 13.75% in Fiscal 2023); (iv) safety control cables (₹888.93 million or 3.48% in Fiscal 2023); and (v) others (₹544.84 million or 2.13% in Fiscal 2023). The company supplies these products to OEMs and the independent aftermarket. Cost of material consumed represents 70.39% of revenue from operations in Fiscal 2023, with Aluminium being the primary raw material at 42.71% of material consumed.
Business Segments
Manufactures brake products including brake panel assembly, brake shoes, disc brake pads, brake lining and mission case
Manufactures aluminium components covering engine parts, body and chassis parts, transmission parts and electric vehicle specific components
Provides wheel assembly services for two-wheeler original equipment manufacturers
Manufactures safety control cables
Manufactures brake shoes, disc brake pads, brake panel assemblies, and related braking components for automotive OEM customers and aftermarket.
Manufactures pressure die castings used in brake shoes, brake panel assembly and ALP solutions.
Manufactures safety control cables for automotive applications.
Sells brake shoes, disc brake pads, hubs, clutch plates, clutch shoes and control cables through authorized dealers and third-party dealers.
Manufactures and supplies brake-shoe and advanced braking systems for two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles. The company holds approximately 50% market share in Fiscal 2023 in terms of production volume for two-wheeler OEMs and branded independent aftermarket on a combined basis.
Manufactures and supplies safety control cables for two-wheeler original equipment manufacturers. The company is among the prominent players in the safety control cables products for 2W OEMs in India.
Manufactures and supplies aluminium lightweighting precision solutions for two-wheeler OEMs. The company held a market share of 9% by production volume for 2W OEMs in India in Fiscal 2023.
Supplies products and solutions to non-automotive industry. The company is in the process of rolling out products and solutions for nine programs for the non-automotive industry between the second and fourth quarter of Fiscal 2024.
Manufactures brake shoes, disc brake pads, brake linings and brake assemblies for 2W, 3W, PV and CV segments in both ICE and EV variants. High entry barriers due to proprietary material formulations and technological requirements.
Designs and manufactures precision aluminum die-cast components including engine parts, body and chassis parts, transmission parts, electrical and electronic parts, and EV-specific components for automotive and non-automotive applications. Focuses on lightweighting, thermal management, and durability.
Manufactures control cables including choke, clutch, brake (front and rear), speedometer, throttle, seat lock, and fuel cables for motorcycles, scooters, and 2W EVs to actuate and control critical applications.
Provides wheel assembly services to 2W OEMs.
Manufactures brake shoes, brake panel assemblies, disc brake pads, and brake linings for 2-wheelers, 3-wheelers, passenger vehicles and commercial vehicles. Products include brake panel assembly, brake shoes, brake pads, and friction linings used in motorcycles, scooters, three-wheelers, and vehicles.
Manufactures lightweight aluminum precision-cast and machined components including engine parts, body/chassis parts, transmission parts, electrical/electronics parts, e-powertrain and EV-specific components such as battery pack housing, de-casing motor, ECU housing, heat sinks, geared pulleys, crankcase, wheel hub, cylinder block, engine cover, filter housing for 2W, 3W, passenger vehicles, commercial vehicles and non-automotive applications.
Manufactures comprehensive range of control cables including front brake cable, rear brake cable, combi brake cable, seat lock cable, throttle cable, fuel lid cable, clutch cable, speedometer cable, cable seat latch, battery lid cable for 2-wheelers, passenger vehicles and commercial vehicles.
Provides wheel assembly services following customer instructions and specifications by assembling components supplied by customers and/or other vendors. Services provided to 2-wheeler OEMs in India, with plans to convert service arrangements into job-work agreements.
Manufacturing and supply of advanced braking systems to OEMs and aftermarket
Manufacturing and supply of aluminum lightweighting precision components to automotive industry
Manufacturing and supply of safety control cables to automotive manufacturers
Manufacturing and sale of advanced braking systems, aluminium lightweighting precision solutions, and safety control cables primarily for automobile industry
Brake-shoe and advanced braking systems for 2Ws, 3Ws, PVs and CVs
Aluminium lightweighting precision solutions for automotive and non-automotive customers
Wheel assembly services for 2W OEMs following customer instructions and specifications
Safety control cable products for automobiles and other OEMs
Supply of products to non-automotive OEM customers including ATVs, power tools and outdoor equipment
SWOT Analysis
Strengths
- • Market leader in 2W brake-shoe and AB systems with ~50% market share(p.202)
- • Leading brand recognition in 2W independent aftermarket segment(p.202)
- • Established relationships with all top 6 2W OEM customers ranging 16-30 years(p.203)
- • Extensive proprietary portfolio of 52 formulations for AB systems(p.205)
- • Strong R&D capabilities with 76 dedicated engineers representing 20.82% of engineering staff(p.205)
- • Significant revenue growth at 28.64% CAGR between FY2021-FY2023(p.208)
- • Strong capital efficiency with RoACE of 22.06% in FY2023(p.208)
- • Powertrain-agnostic product portfolio serving both ICE and EV OEMs(p.202)
- • Advanced material engineering and lightweighting capabilities using aluminum(p.215)
- • Strong revenue growth across all product categories with high CAGR(p.215)
- • Geographically distributed manufacturing footprint with fungible production lines(p.217)
- • In-house R&D and design capabilities with engineering-led operations(p.236)
- • IATF 16949:2016 certification demonstrating quality management system compliance(p.230)
- • Diversified customer base across OEMs, tier manufacturers and aftermarket(p.238)
- • Established supplier to major OEMs with diversified product portfolio(p.303)
- • Multi-state manufacturing footprint with geographic diversification(p.303)
- • Strong revenue and profit growth trajectory(p.299)
- • Solid balance sheet with substantial retained earnings(p.301)
- • Market leader in brake systems for two-wheelers with 50% OEM+IAM market share(p.372)
- • Established customer relationships spanning 16-30 years with top OEMs(p.375)
- • Diversified product portfolio across automotive and non-automotive sectors(p.372)
- • Advanced in-house R&D with 52 proprietary material formulations(p.374)
- • Successful expansion into EV sector with 9 two-wheeler EV OEM customers(p.377)
- • 16 operational manufacturing facilities strategically located near OEM customers(p.374)
- • Strong profitability growth with PAT margin expanding to 5.30% in Q1 FY24(p.399)
- • Leading IAM brand with ASK brand recognized as top in 2W IAM segment(p.372)
Weaknesses
- • Geographic concentration of manufacturing in Haryana creates operational vulnerability(p.47)
- • Significant reliance on leased manufacturing facilities creates lease renewal risk(p.49)
- • Low capacity utilization across multiple product lines indicating demand weakness(p.51)
- • Joint venture (AFFPL) has accumulated losses and negative net worth(p.56)
- • Significant indebtedness with variable rate exposure creating interest rate risk(p.61)
- • Dependence on contract labour with exposure to wage inflation(p.54)
- • Subsidiary has negative net worth and not yet profitable(p.57)
- • High dependence on 2W OEMs representing 76.53% of revenue(p.214)
- • Limited presence in high-growth passenger vehicle and commercial vehicle segments(p.205)
- • Relatively small export revenue base at ₹929.68 million in FY2023(p.212)
- • Declining IAM revenue share from 15.24% in FY2021 to 8.86% in Q1 FY2024(p.213)
- • Heavy reliance on 2W ICE segment facing structural decline with EV transition(p.210)
- • High dependence on few major customers for revenue concentration(p.239)
- • Capacity utilization below 80% for certain products indicating underutilization(p.219)
- • Material costs represent over 70% of revenue creating cost sensitivity(p.234)
- • Dependence on aluminum as primary raw material with limited supplier diversification(p.234)
- • Guarantees provided by Promoter creating contingent liabilities(p.259)
- • Concentration of shareholding among promoters(p.285)
- • Increased debt levels during expansion phase(p.298)
- • Dependency on joint venture with losses(p.299)
- • Litigation risk from landholding in Karnataka(p.320)
- • Rising debt burden from capital expenditure(p.327)
- • High dependence on few major customers(p.332)
- • Subsidiary company in early stage with negative net worth(p.337)
- • Material property not held in company name(p.359)
- • Joint venture company reporting losses with going concern uncertainty(p.361)
- • Heavy dependence on top 3 customers contributing 58.44% of revenue in Q1 FY24(p.375)
- • Largest single customer represents 29.70% of revenue in Q1 FY24(p.375)
- • Joint Venture (AFFPL) has incurred losses in last three Fiscals(p.52)
- • Rising debt levels with total borrowings doubling to ₹3,868.38 million in June 2023(p.379)
- • Debt to Equity ratio increased significantly to 0.57 from 0.26 in June 2022(p.367)
- • Average Debt to EBITDA ratio deteriorated to 5.44x from 3.17x in June 2022(p.367)
- • Over 80% revenue concentration in Indian 2W automotive sector(p.34)
- • Pending criminal proceedings against Independent Director(p.421)
- • Outstanding litigation involving directors(p.421)
- • Multiple creditor obligations(p.423)
- • Intellectual property applications pending(p.426)
Opportunities
- • EV penetration in 2W market expected to reach 24-26% by FY2028 with 55-58% CAGR(p.210)
- • Increased content per vehicle for EVs with higher bill of materials vs ICE(p.210)
- • Strong pipeline with 19 automotive programs starting in Q2 FY2024 and 26 in H2 FY2024(p.206)
- • 41 out of 61 total EV-specific solutions already supplying with 20 under development(p.209)
- • Expansion into PV and CV sectors with advanced braking and lightweighting capabilities(p.212)
- • Export market opportunity with presence in 12 countries and growing international customer base(p.212)
- • Aluminum lightweighting market expected to grow at 11.8% CAGR with EV tailwinds(p.193)
- • Non-automotive sectors (ATVs, power tools, defense) providing diversification avenue(p.205)
- • Rapid EV market growth enabling penetration with lightweighting solutions(p.215)
- • Expanding product portfolio in EV-specific components and thermal management(p.215)
- • Significant pipeline of new programs across automotive and non-automotive sectors(p.234)
- • Capacity expansion through new Bhiwadi facility and planned Kolar facility(p.223)
- • Import substitution opportunities as customers localize EV component manufacturing(p.233)
- • Export market expansion with current presence in 12+ countries(p.238)
- • Expansion into new vehicle segments and emerging EV market(p.303)
- • Capacity expansion through capital work in progress(p.298)
- • Growth in aftermarket segment(p.303)
- • Capital expansion underway for capacity growth(p.337)
- • Joint venture production for commercial vehicle brake pads(p.336)
- • Expanding EV market with growing adoption of electric two-wheelers(p.381)
- • Expanding product portfolio across adjacent vehicle categories (3W, CV, PV)(p.377)
- • Geographic expansion with new facility planned in Kolar, Karnataka(p.374)
- • Non-automotive sector growth across ATVs, power tools and outdoor equipment(p.374)
- • Growing 2W market in India with healthy volume growth(p.381)
- • Wheel assembly conversion to higher-margin job-work arrangement(p.381)
- • Product migration to aluminum for lightweighting and thermal management in EVs(p.377)
- • Export market growth with exports increasing 82.29% in Q1 FY24(p.396)
- • Export capability and international presence(p.424)
- • Established trademark portfolio(p.426)
- • Regulatory compliance and manufacturing infrastructure(p.425)
Threats
- • Dealer distribution channel subject to competitive and control risks(p.47)
- • External logistics dependency creates supply chain disruption risk(p.47)
- • Power, fuel and water supply disruptions could halt manufacturing operations(p.52)
- • Reliance on IDC-allotted land subject to compliance conditions and forfeiture risk(p.50)
- • Ability to pass costs to customers limited by contractual terms and market factors(p.57)
- • Foreign currency exposure on unhedged receivables and payables(p.62)
- • Intense competition from larger competitors with greater resources(p.75)
- • Cyclical nature of automotive industry creates demand volatility(p.79)
- • Environmental regulatory compliance costs and permitting risks(p.69)
- • Intensifying competition from OEMs such as Honda, TVS and Royal Enfield gaining market share(p.152)
- • Structural decline in 2W market with potential 2W OEM consolidation and reduced addressable market(p.152)
- • Regulatory risks from BS-VI Phase 2 requiring OBD2 and potential price hikes(p.154)
- • Subsidy reduction for EVs impacting customer affordability and OEM demand(p.155)
- • Global economic slowdown impacting 2W export markets in Africa and Latin America(p.153)
- • Currency fluctuation risks affecting exports to crude oil-dependent developing countries(p.153)
- • Emerging new EV OEMs disrupting market with first-mover advantage and technological innovations(p.156)
- • Incumbent ICE players rapidly expanding EV capacity threatening startup dominance(p.156)
- • Intense competition in automotive components manufacturing with quality requirements(p.245)
- • Pricing pressure from customers limiting margin improvement(p.239)
- • Material cost volatility and input price inflation exposure(p.234)
- • Regulatory compliance requirements and environmental licensing risks(p.242)
- • Concentrated geographic footprint with nine of 16 facilities in Gurugram/Manesar(p.217)
- • Product recall and liability risks inherent in safety-critical automotive components(p.242)
- • Automotive industry cyclicality and OEM concentration risk(p.303)
- • Raw material and commodity price volatility(p.299)
- • GST demand notice from tax authorities(p.337)
- • Foreign Exchange Management Act investigation by enforcement authorities(p.337)
- • EPCG export obligation requirement for capital goods(p.337)
- • Interest rate sensitivity on variable rate borrowings(p.341)
- • Currency fluctuation exposure from import and export transactions(p.340)
- • 2W sector inherently cyclical and dependent on macroeconomic conditions(p.75)
- • Volatility in raw material prices, particularly aluminum and imported friction materials(p.36)
- • High borrowing leverage limits financial flexibility with rising interest rates(p.379)
- • Foreign exchange exposure on unhedged receivables and payables (5.44% of revenue in June 2023)(p.379)
- • Restrictive covenants on borrowings limit operational and strategic flexibility(p.369)
- • Regulatory changes in customs duty, taxation and environmental policies create uncertainty(p.381)
- • Limited export revenue contribution at 5.85% of Q1 FY24 revenue exposes to domestic market risk(p.378)
- • Intense competition from established and new automotive component manufacturers(p.377)
- • Counterfeit products and intellectual property risks(p.427)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kuldip Singh Rathee | Promoter/Promoter Selling Shareholder | 50.73% | — |
| Vijay Rathee | Promoter/Promoter Selling Shareholder | 39.47% | — |
| Kuldip Singh Rathee | Promoter/Promoter Group | — | — |
| Vijay Rathee | Promoter/Promoter Group | — | — |
| Kuldip Singh Rathee | Promoter | 50.73% | — |
| Vijay Rathee | Promoter | 39.47% | — |
| Prashant Rathee | Promoter Group | 4.90% | — |
| Aman Rathee | Promoter Group | 4.90% | — |
| Kuldip Singh Rathee | Promoter/Promoter Group | — | — |
| Kuldip Singh Rathee | Promoter | 50.73% | — |
| Vijay Rathee | Promoter | 39.47% | — |
| Kuldip Singh Rathee | Promoter | 41.33% | — |
| Vijay Rathee | Promoter | 32.30% | — |
| Kuldip Singh Rathee | Promoter | — | — |
| Vijay Rathee | Promoter | — | — |
| Prashant Rathee | Promoter | — | — |
| Aman Rathee | Promoter | — | — |
| Kuldip Singh Rathee | Promoter Selling Shareholder | — | — |
| Vijay Rathee | Promoter Selling Shareholder | — | — |
| Kuldip Singh Rathee | Promoter Selling Shareholder | — | — |
| Vijay Rathee | Promoter Selling Shareholder | — | — |
Leadership
Kuldip Singh Rathee · Chairman and Managing Director
Rajani Sharma · Vice President (Legal), Company Secretary and Compliance Officer
Naresh Kumar · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
ASK Automotive IPO FAQs
What is the lot size of ASK Automotive IPO?
The minimum lot size of ASK Automotive IPO is 53 shares. One lot costs ₹14,946 at the cut-off price.
When does ASK Automotive IPO open and close?
ASK Automotive IPO opened for subscription on 07 Nov 2023 and closed on 09 Nov 2023.
What is the listing date of ASK Automotive IPO?
ASK Automotive IPO listed on 15 Nov 2023.