Every day some IPO is launched in the IPO market, some of these are mainboard issues, whose size is very big and their plan is to raise a large amount from the market, while some are of SME category, whose size is small. But an IPO (SME IPO) of this category has done such a great job that it has started being discussed everywhere. In fact, Resourceful Automobile (Resourceful Automobile IPO), a small company running just two bike showrooms, had presented an IPO of just Rs 12 crore and it has received bids of not double or triple, but Rs 4800 crore.
Size 12 crores, bids of 4800 crores!
Such craze for IPO has rarely been seen before, as has been seen for the issue of Resourceful Automobile Company. This company operates two bike showrooms in Delhi and only 8 employees work in it. To raise money from the market, this company had introduced its IPO on 22 August, in which investors had invested till 26 August. But there was a race to invest money in this IPO. Resourceful Automobile IPO Size was Rs 11.99 crore, but it was oversubscribed 418 times till the last day. The company received bids of Rs 4768.88 crore. Of these, bids of Rs 2825.11 crore are in the retail category, while bids of Rs 1796.85 crore are in other categories.
This much money had to be invested for one lot
Resourceful Automobile Company had invited bids for a total of 1,024,800 shares with a face value of Rs 10 each under its IPO. This was a fixed price issue and its price band was Rs 117. The lot size of the issue was fixed at 1200 shares and as per the price band, an investor had to bid for at least this many shares and make a minimum investment of Rs 1,40,000. But by the time it closed on August 26, the issue has been subscribed overwhelmingly by investors, surpassing the target by several times.
Bidding competition among retail investors
Retail investors were at the forefront in subscribing to this SME IPO of Rs 12 crore, this can be gauged from the fact that this category has received about 496.22 times subscription. Apart from this, if we talk about the High Net Worth Category (HNI), it has been subscribed 150 times and the Institutional Category has been subscribed 12 times. Its listing will be on BSE SME and the possible date for this has been fixed as 29 August.
The company has two showrooms in Delhi
Resourceful Automobile was founded in the year 2018 and it offers a wide range of two-wheelers. This includes bikes of big companies, sports bikes and scooters. The company’s first showroom is in Dwarka and the second on Palam Road. Resourceful Automobile IPO is making a splash in the grey market. Talking about its grey-market premium (GMP), it is Rs 105 in the unlisted market. In such a situation, its strong listing is expected.
(Note- Before making any investment in the IPO market, please consult your market experts.)
Source (PTI) (NDTV) (HINDUSTANTIMES)