ASK Automotive Limited (“the Company”) the largest manufacturer of brake-shoe and advanced braking systems for two-wheelers in India, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The Company plans to raise funds through offer of equity share capital via initial public offering. The Public Offer comprises ‘Offer for Sale’ of up to 29,571,390 equity shares with face value Rs. 2 each share.
The total ‘Offer for Sale’ comprises up to 20,699,973 equity shares by Kuldip Singh Rathee and up to 8,871,417 equity shares by Vijay Rathee both promoter selling shareholder.
The Company has been supplying safety systems and critical engineering solutions for more than three decades with in-house designing and manufacturing capabilities. According to CRISIL report, the Company has a market share of approximately 50% in Fiscal 2022 in terms of production volume for two-wheeler, original equipment manufacturers, original equipment suppliers and the independent aftermarket combined. The Company’s offerings are powertrain agnostic, catering to electric vehicle as well as internal combustion engine OEMs.
JM Financial Limited, Axis Capital Limited, ICICI Securities Limited and IIFL Securities Limited are the Book Running Lead Managers (BRLMs) to the issue.
The Company commenced operations in 1989 by manufacturing brake shoe products for 2Ws and have since diversified its operations to include offerings such as: (i) AB systems; (ii) Aluminium light weighting precision solutions, where we are a prominent player for 2W OEMs in India with a market share of 8% in Fiscal 2022 in terms of production volume; (iii) wheel assembly to 2W OEMs; and (iv) safety control cables products.
The Company supplies its portfolio of AB systems, ALP solutions, wheel assembly, and SCC products to OEMs in (i) the automotive sector for 2Ws, three wheelers, passenger vehicles and commercial vehicles and (ii) the non-automotive sector for all-terrain vehicles, power tools and outdoor equipment.
In Fiscal 2022, the Company commenced commercial supplies to 2W EV OEMs in India, including, India’s largest 2W EV OEM by market share in calendar year 2022 (by retail sales volume) (Source:
CRISIL Report), TVS Motor Company Limited (“TVS”), Ather Energy Private Limited (“Ather”), Hero
MotoCorp Limited (“Hero MotoCorp”), Greaves Electric Mobility Private Limited (“Greaves”), Bajaj Auto Limited (“Bajaj”) and Revolt Intellicorp Private Limited (“Revolt”). It has long-standing relationships with all six of their top 2W OEM customers ranging from 15 years to more than 20 years.
