The listing date for the initial public offering (IPO) of ASK Automotive Limited has been scheduled for November 15, 2023. As per the official notice from BSE, the equity shares of ASK Automotive Limited will be listed and admitted to dealings on the exchange in the ‘B’ Group of Securities, effective from today. The ASK Automotive IPO listing is expected to take place during a special pre-open session on Wednesday.
Market experts have noted a robust response to the public issue, particularly in the Qualified Institutional Buyer (QIB) segment, citing the company’s attractive fundamentals. Despite concerns about higher valuation and the entire offer being for sale (OFS), analysts anticipate a ‘decent’ debut for ASK Automotive on the stock exchange. The prevailing market sentiment will play a crucial role, given the recent shift in dynamics within the primary market.
Prediction for ASK Automotive IPO Listing Price
Avinash Gorakshkar, Head of Research at Profitmart Securities, emphasized the attractiveness of ASK Automotive Limited’s fundamentals, albeit with slightly higher valuations. With the entire issue being a 100% offer for sale, Gorakshkar suggests that listing gains may be limited, projecting an expected listing premium of 8-10%.
Prashanth Tapse, Senior VP — Research at Mehta Equities, noted the overwhelming response from investors across categories, especially from QIBs. Despite the fully priced-in IPO, Tapse anticipates a decent 10% listing gain, attributing the strong demand to ASK Automotive’s position as a significant player in the brake-shoe and Advance Braking Systems (ABS) market, catering to major automobile companies.
Arun Kejriwal, Founder at Kejriwal Research and Investment Services, expressed caution due to the recent subdued state of the primary market. Kejriwal predicts a more moderate premium of ₹20 to ₹30 per share for allottees, emphasizing the changed market dynamics observed over the past three to four months.
Grey Market Premium Indications
Market observers have reported a grey market premium (GMP) of ₹28 for ASK Automotive shares, suggesting a potential listing price of around ₹310 per share. The public issue was offered in the price band of ₹268 to ₹282 per equity share.
