PE Firm Advent International Backed ASK Investment Managers Gets SEBI Nod For IPO
Mumbai-based ASK Investment Managers Limited (“ASK Investment Managers”), a leading asset and wealth management company, primarily catering to the HNI and ultra HNI market in India, has received market regulator SEBI’s approval for its IPO to raise approximately Rs 2,000 crore, according to market sources.
The Company filed its DRHP with SEBI in August 2018.
The IPO comprises Fresh Issue of shares worth up to Rs. 600 crore, and an Offer for Sale of up to 13,569,405 equity shares by AI Global (The “Investor Selling Shareholder”) and 4,400,000 equity shares by Mr Sameer Koticha (The “Promoter Selling Shareholder”).
The price band will be decided in consultation with the Book Running Lead Managers (BRLMs). JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, and Nomura Financial Advisory and Securities (India) Private Limited, are the BRLMs to the issue.
ASK Investment Managers may, in consultation with the BRLMs, consider a Private Placement of up to 4,395,865equity shares, aggregating to Rs. 300 crore, at its discretion, prior to the filing of the Red Herring Prospectus (“RHP”) with the ROC.
According to the objects of the issue, the company will utilize the proceeds towards
1. Investment in its subsidiary - ASK Financial Holdings Private Limited (“ASKFH”), for augmenting its capital base for the NBFC business; and
2. General corporate purposes.
About ASK Investment Managers Limited
ASK a leading asset and wealth management company, primarily catering to the HNI and UHNI market in India. CRISIL Research notes that they were one of the first companies to obtain a portfolio management services license in India. According to CRISIL Research, they were the third largest company in both discretionary listed equity portfolio management services and discretionary equity overall portfolio management services according to assets under management as of May 30, 2018.
They cater to the investment requirements of their HNI and UHNI clients through the following three business segments:·
# Asset management, which primarily includes their equity investment management and advisory; and property investment management and advisory;·
# Wealth advisory and distribution; and·
# Non-banking financial company business, which recently commenced commercial operations in 2018.
Within its asset management segment, ASK provides equity investment management and advisory services Primarily to HNI and Ultra HNI clients.
According to CRISIL Research, equity remains the most preferred asset class for UHNIs, with a 44% share of UHNI's investment allocation for the first half of Financial Year 2018. Further, CRISIL Research also notes that the AUM of listed equity portfolio management services grew at a CAGR of 45% over the past five years. ASK Investment Manager’s equity investment management and advisory business focuses on long-only equity-focused strategies and has a track record of consistently higher than benchmark returns across their top performing strategies. To market their products to clients, ASK Investment Manager utilizes a distribution network consisting of both in-house and third-party distributors (primarily Indian and multi-national banks and financial services companies). As of March 31, 2018, it had a network of 53 distributors across India. It advises offshore funds mainly based out of Mauritius from India and also manage/advise offshore funds through their subsidiary in Singapore, which is a registered fund management company, which enables them to cater to multiple classes of investors (such as HNI, institutions, family office, pension funds, funds of funds and sovereign wealth funds) across Asia, the Middle East, Africa and Europe.