Sources said that the company's promoters were close to selling stake to a strategic investor, but called off the move at the last moment and later decided to take the company public
ASK Automotive, a maker of various parts and aluminium die casting components for motorcycles, scooters and commercial vehicles, plans to tap the capital market for a Rs 1,000-crore-Rs 1,200-crore initial public offering next year, according to investment banking sources.
ICICI Securities and Investec are among the merchant bankers appointed for the offer.
"The issue will mostly comprise primary shares plus some secondary sale," one of the sources said.
According to sources, ASK Automotive's promoters were close to selling stake to a strategic investor, but called off the move at the last moment and later decided to take the company public.
ASK Automotive was founded by incumbent Chairman and Managing Director KS Rathee. The group's turnover is close to Rs 2,000 crore.
The company is 29 years old and is headquartered at Gurugram in Haryana. Its products include brake shoes, brake pads, clutches, and brake assemblies, among other things.
The products are all critical for safety and fall in a category called 'friction material products'.
ASK Automotive has 14 factories in India and most of them are located in Gurugram and Manesar. The remaining factories are at Haridwar in Uttarakhand, and in Bengaluru and Gujarat.
Besides friction products, the company makes and supplies aluminum die casting products and safety control cables to leading automotive original equipment manufacturers and tier-1 vendors.
At the moment, it is the largest two-wheeler friction product manufacturer in the country.
ASK Automotive's customers include Honda Motorcycle and Scooter India, Hero Motocorp, Maruti Suzuki, TVS, Yamaha, Bajaj Auto, Suzuki, Mahindra & Mahindra and Denso.
Source: www.moneycontrol.com
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