A Delhi-based automobile firm with two-wheeler dealership, Resourceful Automobile, with its Rs 12-crore Initial Public Offering (IPO), two showrooms and eight employees recently saw bids totaling approximately Rs 4,800 crore from an oversubscription of nearly 400 times.
8 Employees, 2 Showrooms: Automobile Firm Wins Market, Gets IPO Bids Worth Rs 4,800 crore
Over four hundred subscriptions, which is unusually high for a Small Medium Enterprise (SME) IPO, has drawn huge attention on social media.
According to a report by NDTV, the automobile firm IPO was subscribed 418.82 times overall, with retail investors leading the charge at 496.22 times subscription, while the "Other" category saw a 315.61 times subscription by August 26, 2024. For a Small Medium Enterprise (SME) IPO, numericals these high are strikingly unusual.
The unusual subscription figures have drawn huge attention on social media. Taking it to X, veteran fund manager Samir Arora commented, "Resourceful Automobile turned out to be resourceful indeed."
Resourceful Automobiles: About the firm
The Delhi-based automobile firm with a small team of eight employees is primarily associated with the sale and servicing of Yamaha motorcycles.
Three of them reportedly handle finance and legal responsibilities, two others deal with sales and marketing, one is in charge of Human Resources and administration while the remaining two supervise operations.
As per the details in its red herring prospectus (RHP), the firm intends to utilise the funds from its IPO to support the growth of its operations. This includes opening two additional showrooms in the Delhi-NCR area, repaying debt, and addressing working capital requirements.
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