ASK Automotive IPO Details:

Offer date: November 7-9, 2023

Price band: ₹268-282 per share

Lot size: 53 share

Reservation: 50% for QIBs, 35% for retail investors, 15% for NII

Business overview

ASK Automotive is India's top brake shoe & braking systems manufacturer, supplying Hero MotoCorp, TVS, Bajaj. Expanding into 4-wheel & commercial vehicles. 

Financial performance

ASK Automotive reports strong recent growth: FY23 saw a 8% YoY revenue increase to 656 crore and a 55% profit after tax surge to 35 crore. 

Industry outlook

Indian auto sector set to grow at 10-12% CAGR in 5 years. Increased income, urbanization, and government support for electric vehicles to fuel growth. 

Competitive landscape

ASK Automotive faces competition from Minda Industries, Bosch, and Brembo. Its competitive advantage lies in scale, client relationships, and innovation focus 

Investment rationale

ASK Automotive, a market leader in Indian brake systems, poised for Indian auto industry growth. Caution: cyclical auto industry and heavy reliance on two-wheelers pose risks for investors.