ASK Automotive IPO

1.    The company is a well-established manufacturer of safety systems and critical engineering solutions and provides solutions to some largest OEMs in the country.
2.    R&D-led production with a focus on customer satisfaction and advanced material knowledge for customization. 
3.    The company also has a technology and innovation-driven manufacturing process, along with a comprehensive solution suite for EV and ICE sectors.
4.    It has long-standing customer relationships with Indian and global OEM players.
5.    The company also has showcased healthy financial metrics.
6.    The management team and board are quite experienced.

1.    80% of the company’s revenues come from the Indian two-wheeler automotive sector. 
2.    The top three customers contribute significantly to the revenue. 
3.    The availability of counterfeit products and a failure to keep the technical knowledge confidential may have adverse effects on the business. 
4.    The company relies on third-party dealers to market, sell and deliver products in the independent aftermarket (“IAM”) category. 
5.    The company's manufacturing facilities are based in only Haryana, which creates geographical concentration. 
6.    ASK Fras-Le Friction Private Limited, the company’s  Joint venture has incurred losses in the past. 
7.    Its subsidiary has a negative net worth and may not be able to turn profitable in the future.
8.    Higher working capital and working expenditure requirements. 
9.    Exposed to foreign exchange rate fluctuations.