Resourceful Automobile IPO: 8 Employees, 2 Showrooms, Firm Shocks Internet with ₹4,800 Crore IPO Bids

Resourceful Automobile IPO: The Resourceful Automobile company which is based in Delhi has shocked investors with Rs 4,800 crore IPO bids. The Resourceful Automobile is a Yamaha two-wheeler dealership company.

The Resourceful Automobile IPO which was launched on August  22 was booked over 400 times with bids worth Rs 4,800 crore.

The market experts are shocked to see this unexpected performance of Resourceful Automobile IPO.

By August 26, the Resourceful Automobile IPO overall was booked 418.82 times while the retail investor’s portion was subscribed 496.22 times, and the “Other” category portion was booked 315.61 times.

Also Read: Smithfield Foods Spins Off Europe Arm Ahead of IPO

These numbers are impossible for a Small Medium Enterprise (SME) IPO, and several experts are concerts about what marked this level of interest.

The company operations include the sale and servicing of Yamaha bikes and scooters. The company has only a small team of eight employees among which three of them manage finance and legal responsibilities while two take care of sales and marketing, one takes care of the HR and administration and the others are in charge of running the business.

The company’s IPO in the grey market premium (GMP) suggests a possible gain of 90%. In the most recent update, the GMP was Rs 105 predicting a listing price of Rs 222 per share with a gain of 89.74%.

The company IPO was closed on August 26, the minimum lot size for retail investors is 1,200 shares with a minimum investment of Rs 140,400. The minimum lot size for High Net-Worth Individuals (HNIs) is at least 2 lots with an investment of at least Rs 280,800.

Also Read: NMDC Group Unveils Plans for NMDC Energy IPO on Abu Dhabi Securities Exchange

The Resourceful Automobile IPO is expected to be listed on BSE, and NSE on August 29, today. Swastika Investmart Ltd is the book-running lead manager while Cameo Corporate Services Limited is the registrar and Nikunj Stock Brokers is the market maker of the issue.

The subscription figures have shocked everyone on the Internet as everyone shares their opinion on social media ‘X’. One user wrote “Resourceful Automobile turned out to be resourceful indeed.”

The company plans to use the funds raised through its subscription to grow its operations.

Deepak Shenoy, head of Capital Mind said, “Is this company crappy? I don’t know. I haven’t analysed it. It’s made 1.5 cr last year, and they’re asking for a valuation of 31 cr. I’ve seen a lot more “expensive” IPOs than that – and who knows, they might even expand. Or they might not. These are risks that investors must take.”

He further added, “I have put notes here on twitter, in times that were less heady, that a company is GOING TO WIPE OUT ALL ITS EQUITY and your money is going to become ZERO, and people have still bought enough for upper circuits.”

Also Read: Abu Dhabi ADIA Invests in Premier Energies India Ahead of IPO