ASK Automotive has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO is entirely an offer for sale (OFS) of 2,95,71,390 equity shares by promoters — Kuldip Singh Rathee and Vijay Rathee — according to the draft red herring prospectus (DRHP).
At present, Kuldip holds a 41.33 per cent stake in ASK Automotive and Vijay owns a 32.3 per cent stake in the firm. Since the IPO is completely an OFS, the entire proceeds will go to the selling shareholders and the company will not receive any funds from the issue.
The company has clients, including TVS Motor Company Ltd, Hero MotoCorp, Greaves Electric Mobility and Bajaj Auto.JM Financial Ltd, Axis Capital Ltd, ICICI Securities Ltd, and IIFL Securities Ltd are the book-running lead managers to issue. The equity shares are proposed to be listed on the BSE and NSE.