NCR-based supplier ASK Automotive is looking to tap the demand for lightweighting across vehicle segments, including passenger vehicles, along with a strong focus on exports for its next frontier of growth. The idea is to bank on its capabilities in aluminum lightweighting precision solutions.
The company’s IPO (initial Public Offering) will open on November 7 and close on November 9, 2023. The anchor book for the IPO is set to open on Sunday, November 6. It has set a price band of Rs 268-282 per share for the offering. The auto suppliers aims to raise Rs 833.91 crore through the sale of equity shares by promoters Kuldip Singh Rathee, who holds a 50.73% stake, and Vijay Rathee a 39.47% stake.
Speaking to Financial Express Online, Kuldip Singh Rathee, Chairman & MD, ASK Automotive shared that the company is going public to not just raise funds, but get better global visibility and exposure. It already is one of largest manufacturer of two-wheeler advanced braking systems in India with around 50 percent market share in OEMs.
In the two-wheeler space, it works with both IC- and EV players and counts the likes of Honda Motorcycle & Scooter India, Hero MotoCorp, TVS Motor Co, India Yamaha Motor, Bajaj Auto, Royal Enfield, Ather Energy, Ampere by Greaves and Revolt Intellicorp amongst its customers.
The idea is now to focus on global two-wheeler space, passenger vehicles, commercial vehicles and off-road construction equipment segments as well.
At present, the company says exports just contribute around 3.5 percent of its revenue, but the potential is immense. To give a context, ASK Automotive clocked Rs 2,551 crore revenue in FY2023, up 27 percent YoY and net profit of Rs 122 crore, up 4.7 percent YoY.
It has also established an in-house tooling and design for aluminum lightweighting that will further open up new opportunities to better serve customers across segments. Kuldip says the idea is to gear up for newer opportunities wherever available.
“Because of our specialisation in lightweighting, thermal management and critical precision engineering. There will be focus on the lightweighting which will means more aluminum products when EV transition fully takes place. We will be net gainers in slide in this transition. Our sunrise sector is a aluminum lightweighting where we see a lot of potential and exports and the EV segment which we feel will grow in a bigger way,” says Kuldip.
When asked about the slowdown in the two-wheeler space, he says that the has gone through very tough time for last 3-4 years. “The segment saw its peak of FY2019 see it performing much better in the coming years. See one of the sectors that has not yet touched its previous peak. It has gone through tough periods and now the only way for it is up (growth),” concludes an optimistic Kuldip.
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