Ask Automotive Limited IPO Company Profile :
Ask Automotive Limited is the largest manufacturer of brake-shoe and advanced braking (“AB”) systems for two-wheelers (“2W”) in India with a market share of approximately 50% in Fiscal 2022 in terms of production volume for original equipment manufacturers (“OEMs”) and the branded independent aftermarket (“IAM”), on a combined basis. The company has been supplying safety systems and critical engineering solutions for more than three decades with in-house designing, developing and manufacturing capabilities. The company offerings are powertrain agnostic, catering to electric vehicles (“EV”) as well as internal combustion engine (“ICE”) OEMs.
Ask Automotive Limited IPO Business Offerings:
- AB systems.
- aluminium lightweight precision (“ALP”) solutions
- wheel assembly to 2W OEMs
- safety control cables (“SCC”) products
Ask Automotive Limited supplies its portfolio of AB systems, ALP solutions, wheel assembly, and SCC products to OEMs in:
- The automotive sector for 2Ws, three-wheelers (“3Ws”), passenger vehicles (“PVs”) and commercial vehicles (“CVs”)
- The non-automotive sector for all-terrain vehicles (“ATVs”), power tools and outdoor equipment.
Ask Automotive Limited supplied its products to all of the top six 2W OEMs, in terms of production volume and value in Fiscal 2022 in India, the largest motorized 2W market in the world, with domestic sales of 13.73 million units during Fiscal 2022. 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, 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”). The company has long-standing relationships with all six of its top 2W OEM customers ranging from 15 years to more than 20 years.
Ask Automotive Limited IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹2 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | 29,571,390 shares
(aggregating up to ₹[●] Cr) |
| Offer For Sale | 29,571,390 shares
(aggregating up to ₹[●] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Promoters | Kuldip Singh Rathee and Vijay Rathee |
Ask Automotive Limited IPO
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Ask Automotive Limited IPO Financial Analysis:
| Particulars | FY-23(in cr.) | FY-22(in cr.) | FY-21(in cr.) | CAGR |
| Revenue from Operations | 2,555.17 | 2,013.08 | 1,543.99 | 28.6% |
| Other Income | 11.11 | 11.18 | 23.78 | |
| Cost of Goods Sold | 1,781.78 | 1,393.45 | 998.18 | 33.6% |
| Employee Cost | 139.37 | 122.70 | 102.26 | |
| Other expenses | 402.31 | 328.23 | 260.88 | |
| EBITDA | 242.83 | 179.88 | 206.45 | 8.5% |
| EBITDA margin% | 9.50% | 8.94% | 13.37% | |
| Depreciation | 60.71 | 55.91 | 51.89 | |
| Interest | 11.19 | 8.08 | 10.85 | |
| Dies for own use | 4.72 | 2.38 | 3.66 | |
| Share of net losses of joint venture | (5.89) | (5.28) | (4.41) | |
| Profit / (loss) before tax | 169.76 | 112.99 | 142.96 | 9.0% |
| Total tax | 46.81 | 30.33 | 36.76 | |
| Profit / (loss) After tax | 122.95 | 82.66 | 106.20 | 7.6% |
| Profit / (loss) After tax margin% | 4.81% | 4.11% | 6.88% |
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Check Ask Automotive Limited IPO Allotment Status
Go Ask Automotive Limited IPOallotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
- To Ask Automotive Limited IPO Allotment Status
- Go to Application Status
- Select Ask Automotive Limited IPO
- Enter your PAN Number or Application Id or DP Client Id.
Ask Automotive Limited IPO
Application Form
Ask Automotive Limited IPO Revenue from Operations:
| Segment | FY-23(in cr.) | % | FY-22(in cr.) | % | FY-21(in cr.) | % | CAGR |
| AB systems | 1067.23 | 41.77% | 928.72 | 46.13% | 816.55 | 52.89% | 9.3% |
| ALP solutions | 993.17 | 38.87% | 755.67 | 37.54% | 489.70 | 31.72% | 26.6% |
| Wheel assembly | 351.40 | 13.75% | 240.90 | 11.97% | 168.71 | 10.93% | 27.7% |
| SCC products | 88.89 | 3.48% | 50.97 | 2.53% | 43.70 | 2.83% | 26.7% |
| Others | 54.48 | 2.13% | 36.83 | 1.83% | 25.33 | 1.64% | 29.1% |
| Total | 2555.17 | 100.00% | 2013.08 | 100.00% | 1543.99 | 100.00% | 18.3% |
Ask Automotive Limited IPO Major Shareholders:
| S.NO. | Name of the Shareholder | No. of Shares | % of pre-Offer shareholding |
| 1 | Kuldip Singh Rathee | 81,488,400 | 41.33% |
| 2 | Vijay Rathee | 63,676,200 | 32.30% |
| 3 | Aman Rathee | 23,789,998 | 12.07% |
| 4 | Prashant Rathee | 28,187,999 | 14.30% |
| Total | 197,142,600 | 100.00% |
Ask Automotive Limited IPO Offer for Sale Details:
| S. No. | Name of the Selling Shareholder | Number of Equity Shares
being offered in the Offer for Sale (Up to) |
|
| 1. | Kuldip Singh Rathee | 20,699,973 Equity Shares | |
| 2. | Vijay Rathee | 8,871,417 Equity Shares | |
Ask Automotive Limited IPO Strengths:
- Ask Automotive Limited has a comprehensive portfolio of EV and powertrain-agnostic products and as of March 31, 2023, was supplying safety systems and critical engineering solutions to nine 2W EV OEMs in India. In addition, the company is developing capabilities for product migration from steel and plastics to Aluminium, for lightweighting and thermal management for e-powertrain and e-powertrain products.
- Due to the capital-intensive nature of Ask Automotive Limited’s business, coupled with the heavy dependence on complex technology, machinery and systems, the market may be difficult for new entrants to encroach upon, due to its high entry barriers.
- Ask Automotive Limited’s R&D efforts are focused on developing new formulations to address the changing ESG and safety standards. As of March 31, 2023, the company had a portfolio of 52 proprietary formulations that it uses in the production of AB systems for 2Ws, 3Ws, PVs and CVs, meeting stringent safety, durability and performance specifications of EV and ICE OEMs.
- Ask Automotive Limited has introduced automation in its manufacturing processes that allow it to combine operations, eliminate multiple operators, retain control over its proprietary formulations and increase efficiency while controlling costs and maintaining consistent product quality. Furthermore, the production line configurations are fungible, allowing it to interchange capacity and product mix between product categories within and across automotive and non-automotive sectors, based on customer and operational requirements.
- Ask Automotive Limited entered the EV sector in Fiscal 2021 to complement its existing suite of systems and solutions for the ICE sector. The company has developed technologically advanced products based on customer specifications in the EV sector, including e-powertrain pulleys for a 2W EV customer to help achieve lightweighting for its vehicles.
- Ask Automotive Limited attribute its long-standing relationships with its customers to its focus on timely delivery, quality consciousness, cost efficiency, design, tooling and technological capabilities. The company intends to diversify and expand its business operations in accordance with the evolving needs of its customers and intends to leverage its long-standing relationship with such market players allowing it to leverage industry tailwinds in the automotive sector.
Ask Automotive Limited IPO Risk Factors:
- A significant portion (more than 80%) of the company’s revenue from operations in each of the last three Fiscals is attributable to the Indian two-wheeler automotive sector. Any adverse changes in the two-wheeler automotive sector could adversely impact the business, results of operations and financial condition.
- Ask Automotive Limited is dependent on its top three customers who contribute more than 50.00% of the revenue from operations with its single largest customer contributing more than 30.00% of the revenue from operations in each of the last three Fiscals. The loss of any of these customers or a reduction in purchases by any of them could adversely affect the business, results of operations and financial condition of the company.
- Ask Automotive Limited’s business and profitability are substantially dependent on the availability and cost of its raw materials, including Aluminium, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact the business, results of operations and financial condition.
- Ask Automotive Limited is dependent on contract labour and any disruption to the supply of such labour for the manufacturing facilities or the inability to control the composition and cost of the contract labour could adversely affect its operations.
Ask Automotive Limited IPO Prospectus:
- Ask Automotive Limited IPO DRHP- SEBI | ASK Automotive Ltd – DRHP
- Ask Automotive Limited IPO RHP-
Registrar to the offer:
Link Intime India Private Limited
Tel: +91 810 811 4949
E-mail: askauto.ipo@linkintime.co.in
Investor Grievance E-mail: askauto.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
Website: www.linkintime.co.in
SEBI Registration No: INR000004058