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With two Yamaha showrooms and a workforce of eight, Resourceful Automobile's SME IPO has captured the attention of the internet, boasting bids totaling Rs. ₹2,700 crore.
The initial public offering (IPO) experienced a staggering demand, with bids reaching nearly 400 times the number of shares available. According to data from the Bombay Stock Exchange (BSE), there were 40.76 crore bids for just 10.24 lakh shares. Notably, the retail investor segment alone recorded a subscription rate of 496 times, highlighting the extraordinary interest in this offering.
Resourceful Automobile's SME IPO generated significant buzz on social media this past Monday, attracting considerable investor attention despite its relatively small size. One user on X captured the excitement by stating, "Resourceful Automobile SME IPO is astonishing. With just 2 Yamaha dealerships and 8 employees, they sought ₹12 crore but ended up with ₹2,700 crore. Is anyone questioning the valuation of 2 showrooms and 8 staff members?"
- The initial public offering (IPO) commenced on August 22 and has garnered significant attention as Resourceful Automobile prepares to debut on the BSE SME platform on August 29.
- Cameo Corporate Services is set to announce the allotment details on August 27.
- This upcoming listing is being closely monitored by investors and market analysts alike.
- Resourceful Automobile, operating under the name "Sawhney Automobiles," has attracted considerable interest despite its relatively small size.
- The company specializes in the sale and maintenance of Yamaha motorcycles and scooters, with two showrooms located in New Delhi.
- As outlined in its draft red herring prospectus (DRHP), the funds raised from the IPO will be utilized for expansion efforts, including the establishment of two additional showrooms in the Delhi-NCR area, debt repayment, and addressing working capital requirements.
Resourceful Automobile disclosed an operational cash flow deficit of ₹19.33 lakh for the period concluding on October 31, 2023. The significant oversubscription and elevated grey market premium, which is estimated to reach as high as 73%, have prompted caution among certain traders regarding speculative investment activities.
