ASK Automotive Promoter To Offload Stake Worth Rs 516 Crore Through OFS

Kuldip Singh Rathee, the promoter of ASK Automotive Ltd., will offload a total of 6.05% stake worth Rs 516 crore through an offer for sale between Sept. 26 and Sept. 27. The orders for the OFS will be placed on both the BSE and NSE.

The OFS will have a base offer of 1.08 crore equity shares representing 5.5% and an oversubscription of 10.84 lakh shares representing 0.5%, according to an exchange filing by the company on Wednesday. Rathee held a 40.23% stake in the company as of June 2024.

The floor price for the issue has been set at Rs 433 per share. The issue will open for non-retail investors on Sept. 26, with the option to carry forward their unallotted bids to the next day. The company has allotted Sept. 27 for retail investors.

JM Financial Services Ltd. and ICICI Securities Ltd. are the brokers for the offer for sale.

The stock closed 0.29% higher at Rs 467.90 per share, compared to a 0.25% advance in the benchmark Nifty 50. It has risen 50.89% since its listing in November 2023 and 63.74% year-to-date.

All three analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 1.7%.