ASK Automotive’s preliminary public providing (IPO), launched on November 7, has been oversubscribed by 1.85 instances on the final day of the providing at the moment. The corporate is looking for to lift Rs 834 crore by issuing Rs 295 crore of fairness shares via a proposal on the market by promoters Kuldip Singh Rathee and Vijay Rathee.

Retail buyers and non-institutional buyers (NIIs) positioned bids in extra of their allotment of shares, with quotes starting from Rs 268-282. Nonetheless, subscriptions from certified institutional consumers (QIBs) have been decrease than their devoted tranches. The corporate acquired a complete of bids of Rs 383 crore towards a problem measurement of Rs 20.60 crore.

Forward of the IPO, ASK Automotive had raised Rs 250.2 crore in funding from 25 main buyers together with Morgan Stanley and Goldman Sachs. The auto elements maker reported robust monetary outcomes for fiscal 2023, with income reaching 2,555 crore rupees, a progress of 27%. Revenue after tax for a similar interval was 1.23 billion rupees (INR 1 billion = roughly US$12 million).

Given ASK Automotive’s robust monetary place, enlargement plans and affordable valuation, analysts suggest subscribing to the IPO. The corporate can also be anticipated to profit from the continuing electrical automobile revolution.

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