ASK Automotives began its operations in 1989. Over the years, the company has supplied safety systems and critical engineering solutions to internal combustion engine (ICE) and electric vehicle OEMs or original equipment manufacturers. They have an in-house team for designing, developing and manufacturing their products.
The company has diversified its operations to include offerings such as:
AB systems, aluminium lightweighting precision (ALP) solutions, wheel assembly to two-wheeler OEMs and safety control cables. Their customer base comprises OEMs for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, all-terrain vehicles, power tools and outdoor equipment. Of these products, AB systems and ALP solutions bring in the highest revenue share of around 41.77% and 38.87% of the revenue in FY 2023, respectively.
The size of the auto component market is expected to grow at a 12-14% CAGR between Fiscal 2023 and Fiscal 2028. Within this, the domestic and export-driven growth in the market for advanced braking systems is expected to be at 8.9% CAGR over the next five years. Similarly, the domestic market size of ALP solutions is expected to grow at an 11.3% CAGR between 2023 and 2028. This may help ASK Automotives in scaling its revenues.
ASK Automotive Ltd IPO Details
ASK Automotive Ltd IPO Date
The dates for bidding for the ASK Automotive IPO are November 7, 2023 to November 9, 2023.
ASK Automotive Ltd IPO Price Band
ASK Automotive is a book-built IPO with a price range of ₹268 to ₹282 per share.
ASK Automotive Ltd IPO Lot Size
The ASK Automotive Ltd IPO lot size is 53 shares.
ASK Automotive Ltd IPO Objectives
The proceeds are all coming via the offer for sale and hence will not be received by the company. Overall the IPO will help enhance the brand’s visibility and provide liquidity to its existing shareholders.
Peer Details
The company’s peers include:
- Endurance Technologies Limited
- Uno Minda Limited
- Suprajit Engineering Limited
- Bharat Forge Limited
How to Check the Allotment Status of the ASK Automotive Ltd IPO?
A: Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of ASK Automotive Ltd
Registered office: Flat No. 104, 929/1, Naiwala, Faiz Road, Karol Bagh, New Delhi 110 005, Delhi, India
Phone: +91 124 4396907
E-mail: compliance@askbrake.com
Company Financials
| Particulars (₹ in millions) | Year Ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|
| Total Income | 25,662.79 | 20,242.60 |
| Profit After Tax | 1,229.53 | 826.59 |
| Net Increase (Decrease) in cash and cash equivalents | 9.25 | 172.25 |
| Return on Average Capital Employed | 22.06% | 16.76% |
| Debt to Equity Ratio | 0.49 | 0.25 |
Know before investing
Strengths
3They are the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers in India with a market share of approximately 50% in Fiscal 2023 in terms of production volume.
They identified the EV sector as an opportunity and diversified into this sector in FY 2021 to complement their existing suite of systems and solutions for the ICE sector.
They have long-standing relationships with major multinational companies like Stanley Black & Decker, Polaris, and MTD Products. In India, their customers include the top six two-wheeler OEMs.
Risks
3Their revenue from the two-wheeler category constituted over 90% of their total revenue in FY 2023. This may be too much of a concentration in their source of revenue.
Their top 3 customers contribute more than 50% of their revenue from operations, including their largest customer which contributes approximately 30% of their revenue from operations. Any loss of a top customer may seriously affect their revenues.
They depend on third-party suppliers for raw materials and do not have firm or exclusive arrangements with any of their suppliers. This opens their supply chain to disruption.
