ASK Automotive promoter to pare 6% stake via OFS

26 Sep 2024 , 11:42 AM

ASK Automotive Ltd said on Wednesday (September 25) that Kuldip Singh Rathee, one of the company’s promoters, intends to sell a 6.05% equity position through an offer for sale (OFS) on September 27-28, 2024.

The floor price for the sale is ₹433 per share, with the base issue consisting of 5.50% equity, corresponding to 1.08 Crore shares, and a greenshoe option of 0.55%, or 10.8 lakh shares. The brokers for the deal are JM Financial Services Ltd and ICICI Securities Ltd.

ASK Automotive, based in Gurugram, claims to be India’s largest manufacturer of brake shoes and advanced braking systems (ABS) for two-wheelers, with a combined market share of roughly 50% in the financial year 2023 in terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket.

The company has lately expanded its operations to serve the biggest companies in the EV sector, including TVS Motor, Ather, Hero Motocop, Greaves, Bajaj Auto, and Revolt, increasing its market share. As of June 30, 2023, the company had 15 manufacturing facilities spread throughout five states in India, the majority of which were strategically positioned near its OEM customers.

The company reported a combined turnover of ₹1,544 Crore, ₹2,013 Crore, and ₹2,555 Crore in FY21, FY22, and FY23, respectively. The company made a net profit of ₹106 Crore, ₹83 Crore, and ₹123 Crore throughout the aforementioned period.

At around 10.39 AM, ASK Automotive was trading 1.90% lower at ₹459, against the previous close of ₹467.90 on NSE. The counter touched an intraday high and low of ₹463.20, and ₹443, respectively.

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