ASK AUTOMOTIVE LIMITED

ASK AUTOMOTIVE LIMITED- IPO DETAILS 

Company Overview 

ASK Automotive Limited, established in 1988, is a prominent manufacturer of advanced braking systems designed for two-wheelers in India. The company initially started its operations by producing brake shoe products for two-wheelers (2Ws) and has since diversified its product portfolio to include a range of offerings. These encompass advanced braking (AB) systems, aluminum lightweight precision (ALP) solutions, wheel assembly for 2W OEMs, and safety control cables (SCC) products. ASK Automotive offers a versatile range of solutions that cater to the requirements of both electric vehicle (EV) and internal combustion engine (ICE) original equipment manufacturers (OEMs), positioning the company as a valuable player in the automotive industry. 

As of June 2023, the company operates 15 manufacturing units distributed across five states in India. It boasts a diverse clientele that includes well-known names like HMSI, HMCL, Suzuki, TVS, Yamaha, Bajaj, Royal Enfield, Denso, Magneti Marelli, and many others. ASK Automotive also serves the independent aftermarket and exports its products by leveraging manufacturing facilities situated in different regions of the country. 

Objective of the IPO 

Here are a few quick reasons why ASK Automotive Limited going public:  

1. As the entire issue involves an offer for sale, the company will not receive any proceeds from this Initial Public Offering (IPO). The primary objective of this IPO is to boost the company's visibility and brand recognition while offering liquidity to its existing shareholders. 

Company Financials 

Key Performance Indicator 

Pros 

1. ASK Automotive places a strong focus on technology and innovation, aiming to create tailored solutions for both the electric vehicle (EV) and internal combustion engine (ICE) sectors through ongoing R&D and design efforts. 

2. The company has cultivated enduring customer relationships with a diverse client base comprising both Indian and global OEM customers. This is primarily attributed to the company's extensive experience in designing complex critical safety systems and solutions. 

3. To ensure it maintains a highly skilled and up-to-date workforce, ASK Automotive consistently enhances its engineering expertise through in-house training programs. This approach equips its employees with diversified skill sets and ensures they remain current with the latest manufacturing technologies and processes. 

4. The company's production model is anchored in research and development (R&D) and design, with a specific emphasis on two key areas: 1) Improved material understanding to customize systems and products according to customer specifications. 2)The development of lightweight precision products. 

Cons 

1. The company heavily relies on its top three customers for 50% of its revenue. Notably, a single customer contributes 30% of its total revenue. The potential loss of any of these major customers could significantly impact the company's business and financial stability. 

2. ASK Automotive depends on third-party suppliers for the supply of raw materials. The lack of exclusive arrangements with these suppliers means that any disruption or loss of key suppliers could have adverse effects on the company's operations and business continuity. 

3. The company does not own its Registered Office and the land on which some of its manufacturing facilities are situated. Failing to renew existing lease agreements at commercially favorable terms or at all could have a material adverse effect on the company's business and manufacturing capabilities. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”