ASK Automotive IPO opens 7.55% higher on NSE, closes with gains

ASK Automotive IPO had a rather robust listing on 15th November 2023, listing at a smart premium of 7.55% on the NSE and managed to close the day with gains of 9.89% over the IPO issue price of ₹282 per share. The pattern was slightly different on the BSE. On the Bombay Stock Exchange (BSE), the stock of ASK Automotive opened at ₹304.90 per share, a premium of 8.12% over the IPO issue price of ₹282 per share. For the day, the stock closed on the BSE at ₹310.20, an overall gain of 10% over the IPO issue price of ₹282 per share.  

While the closing price on 15th November 2023 was above the IPO issue price for the day, it also closed comfortably above the listing price and the issue price of the IPO on the BSE and also on the NSE. For the day, the Nifty closed 232 points higher while the Sensex closed a full 742 points higher as the markets celebrated the rally in the Dow and NASDAQ after the US consumer inflation had come in lower than expected at just 3.2% for October 2023. Both the Nifty and the Sensex showed sterling gains on Wednesday, gaining more than 1.1% in a single day of trade. That rubbed off on the stock price performance of ASK Automotive Ltd.

IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 51.14X  overall and QIB subscription was at 142.41X. In addition, the retail portion had got subscribed 5.70X in the IPO while the HNI / NII portion also got a healthy subscription of 35.47X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock closed around 10% higher over the issue price of the IOP.

ASK Automotive IPO price was fixed at the upper end of the band at ₹282 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹268 to ₹282 per share. On 15th November 2023, the stock of ASK Automotive Ltd listed on the NSE at a price of ₹303.30 per share, a strong premium of 7.55% over the IPO issue price of ₹282 per share. On the BSE also, the stock listed at ₹304.90, a premium of 8.12% over the IPO issue price of ₹282 per share. Here is the ASK Automotive Ltd listing story on 15th November 2023.

How the stock of ASK Automotive IPO closed on both exchanges?

On the NSE, ASK Automotive Ltd closed on 15th November 2023 at a price of ₹309.90. That is a first day closing premium of 9.89% on the issue price of ₹282 and also a premium of 2.18% on the listing price of ₹303.30 per share. In fact, the listing price turned out to be exactly the low price of the day on the NSE and the stock traded for the entire trading day above the opening listing price. On the BSE also, the stock closed at ₹310.20. That represents a first day closing premium of 10.00% above the IPO issue price and also a premium of 1.74% above the listing price on the BSE at ₹304.90 per share. On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, albeit the gains were subdued. In fact, the opening price turned out to be very near to the low price of the day on the BSE while it actually turned out to be the low price on the NSE. The high price of the day on both the stock exchanges on 15th November 2023 was well below the high price of the day, showing some bouts of selling towards the end of the trading session. In fact, on the NSE, the stock closed with open selling quantity of 14,214 shares, while there was unmet selling pressure on BSE also at the end.

Price volume story of ASK Automotive IPO on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 15th November 2023. On Day-1 of listing, ASK Automotive Ltd touched a high of ₹316.70 per share on the NSE and a low of ₹303.30 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was exactly the IPO opening price, the stock of ASK Automotive Ltd closed at a premium but well below the high price of the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of ASK Automotive had an upper and lower circuit limit of 10% either ways.

For the day on the NSE, the upper circuit price was ₹333.60 per share while the lower circuit price was ₹273.00. During the day, the high price of the day at ₹316.70 was well below the upper band price while the low price of the day at ₹303.30 was well above the lower band price for the day. On Day-1 of listing, the ASK Automotive Ltd stock traded a total of 216.94 lakh shares on NSE amounting to value of ₹670.83 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some genuine profit booking visible towards the end of the trading session. The stock closed the day with pending sell orders of 14,214 shares on the NSE.

Price volume story of ASK Automotive IPO on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (NSE) on 15th November 2023. On Day-1 of listing, ASK Automotive Ltd touched a high of ₹317.00 per share on the BSE and a low of ₹304.15 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was just below the IPO opening price, the stock of ASK Automotive Ltd closed at a premium but well below the high price of the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of ASK Automotive had an upper and lower circuit limit of 10% either ways.

For the day on the BSE, the upper circuit price was ₹341.20 per share while the lower circuit price was ₹279.20. During the day, the high price of the day at ₹317.00 was well below the upper band price while the low price of the day at ₹304.15 was well above the lower band price for the day. On Day-1 of listing, the ASK Automotive Ltd stock traded a total of 14.35 lakh shares on BSE amounting to value of ₹44.44 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some genuine profit booking visible towards the end of the trading session. The stock closed the day with pending sell orders on the BSE also.

Market capitalization, free float, and delivery volumes

Volumes on the BSE was generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, except for some profit booking at the end. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 216.94 lakh shares traded during the first day of trading, the deliverable quantity represented 113.26 lakh shares or a deliverable percentage of 52.21% on the NSE, which is marginally higher than the routine listing day median. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 14.35 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 7.31 lakh shares representing total deliverable percentage of 50.91%, which is almost at par with the delivery ratio on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing also.

At the close of Day-1 of listing, ASK Automotive Ltd had a market capitalization of ₹6,115.36 crore with free-float market cap of ₹672.69 crore. ASK Automotive Ltd has issued capital of 1,971.43 lakh shares with a par value of ₹2 per share.