Resourceful Automobile IPO: The share of Delhi-based company Resourceful Automobile was listed on BSE today. The company’s share had a muted listing.
This IPO was listed on BSE at Rs 117 against its price band of Rs 177. After listing, the stock fell by about 4.9% and reached an intraday low of Rs 111.
However, later it hit an upper circuit of 5% and the stock reached an intraday high of Rs 122.85. Let us tell you that the IPO of Resourceful Automobile opened on 22 August and closed on 26 August.
The size of this SME IPO was Rs 12 crore and it was subscribed about 500 times.
Company Business
The company, established in the year 2018, operates under the brand name Sahni Automobile. It is associated with Yamaha two-wheelers. It deals in the sale and servicing of two-wheelers.
As of December 28 last year, the company has two showrooms and a total of eight employees.
The company will use the amount raised from the issue to open new showrooms in the National Capital Region Delhi, repay debt, meet working capital requirements, and for general company purposes.
The share of the company was suggested as being listed through the SME platform of BSE.
Let us tell you that the Resourceful Automobile IPO included a 10.25 lakh equity share. Their price was kept at Rs 117 per share.
Investors Received A Positive Response
The IPO received a huge reception from investors. The company put 9.76 lakh shares for sale while bids came for 40.76 crore shares.
That is, it was subscribed 419 times in three days. The SME IPO received a 10.35 times subscription on the first day while it received a 74.13 times subscription on the second day.
Overall, the non-institutional investors’ category got 315.61 times subscriptions while the retail investors’ category got 496.22 times subscriptions.
SEBI Has Issued An Alert
Let us let you that the full-time member of SEBI Ashwini Bhatia on Friday asked chartered accountants to be more careful when conducting audits of companies that are listed within the SME exchange platform.
The SEBI chairperson Madhabi Puri Buch had expressed concerns about price manipulation when it came to trading and listing in SEBI’s SME exchange platform in March. She advised investors to be wary.
Quick Fact
Resourceful Automobile
| Company name | Resourceful Automobile |
|---|---|
| Location | Delhi |
| IPO price band | ₹177 |
| Listing price | ₹117 |
| Initial price drop | 5% |
| Intraday low | ₹111 |
| Upper circuit hit | 5% |
| Intraday high | ₹123 |
| IPO open date | August 22 |
| IPO close date | August 26 |
| IPO size | ₹12 crore |
| IPO subscription | 500 times |
| Established year | 2018 |
| Brand name | Sahni Automobile |
| Main business | Yamaha two-wheelers |
| Number of showrooms | 2 |
| Number of employees | 8 |
| Fund usage 1 | New showrooms (NCR Delhi) |
| Fund usage 2 | Repay debt |
| Fund usage 3 | Working capital |
| Fund usage 4 | General purposes |
| SME platform | BSE |
| Equity shares in IPO | 10.25 lakh |
| Share price in IPO | ₹117 |
| Investor response | Huge |
| Shares offered | 9.76 lakh |
| Shares bid | 40.76 crore |
| Subscription (overall) | 419 times |
| Subscription (Day 1) | 10 times |
| Subscription (Day 2) | 74 times |
| Non-institutional investors | 316 times subscription |
| Retail investors | 496 times subscription |
| SEBI alert | Caution for audits on SME exchanges |
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