Resourceful Automobile made its debut on the BSE SME platform today, listing at ₹117 per share, which matches its initial public offering (IPO) price. Following a flat listing, the stock has shown positive momentum, currently trading at ₹122.85, reflecting a gain of 5.00%.
IPO Highlights
The IPO, which raised ₹12 crore, garnered an overwhelming response, with bids totaling approximately ₹4,800 crore, resulting in a remarkable oversubscription of 419 times. This strong demand underscores the growing interest in small and medium enterprises (SMEs) in the Indian market.
Founded in 2018, Resourceful Automobile operates under the brand “Sawhney Automobile” and specializes in the sale and servicing of Yamaha two-wheelers. Despite having only two showrooms and a workforce of just eight employees, the company has captured significant investor attention.
Use of Proceeds
The funds raised from the IPO will be utilized for expanding operations, including the opening of two new showrooms in the Delhi-NCR region, repaying existing debt, and addressing working capital needs. The company aims to enhance its footprint in the competitive two-wheeler market, leveraging its association with Yamaha.
Market Context
The listing comes at a time when SME IPOs are experiencing a surge in popularity, driven by strong retail investor interest. While the listing was flat compared to expectations set by grey market trading, which had indicated a premium of nearly 89%, the current market performance suggests a positive outlook.
Investors remain cautiously optimistic about the future growth potential of Resourceful Automobile, given the company’s strategic plans and the overall bullish sentiment surrounding SME listings in the Indian stock market. As the market continues to evolve, Resourceful Automobile’s performance will be closely monitored by investors and analysts alike.
