Financial distribution firm ASK Investment Managers has filed for draft red herring with SEBI to launch its IPO.
The IPO proposes to offer for sale up to 1.36 crore equity shares by AI Global and 44 lakh shares by a promoter Sameer Kotecha, said the company.
The company will decide the issue price in consultation with book running lead managers such as JM Financial, Axis Capital, Citigroup Global Markets India and Nomura Financial Advisory and Securities. Also, the company may consider a private placement of up to 44 lakh shares amounting to Rs.300 crore.
The company claims that it generates Rs.374 crore through distribution of financial products. “The significant majority of our revenue comes from asset management, advisory and other fees charged by us for the services we provide to our asset management clients. Our asset management, advisory and other fees for the financial years ended March 31, 2018, March 31, 2017, and March 31, 2016 were Rs.3,739.67 million, Rs. 2,811.51 million and Rs.1,880.14 million, respectively, representing 82.80%, 87.82% and 88.07% of our revenue from operations, respectively. These fees typically have both a fixed and a variable component (in the form of a performance fee, if the products performs better than a pre-specified 'hurdle rate'). Accordingly, any decrease in our AUM will cause a decline in our revenue from operations. The AUM may decline or fluctuate for various reasons, many of which are outside our control.”
AMFI data shows that ASK Wealth has managed AUA of Rs.3732 crore and received gross commission of Rs.24 crore as on March 2018.