Resourceful Automobile, a Delhi-based two-wheeler dealership, has made headlines with its Rs 12-crore Initial Public Offering (IPO). The IPO has been oversubscribed 400 times, attracting bids worth Rs 4,800 crore. This unexpected response has left market experts baffled.
The Resourceful Automobile IPO was subscribed 418.82 times overall, with retail investors leading the charge at 496.22 times subscription. The "Other" category saw a 315.61 times subscription by August 26, 2024.
These figures are notably high for a Small Medium Enterprise (SME) IPO, leading to questions about what drove this level of interest.
The company, based in Delhi, specializes in the sale and servicing of Yamaha motorcycles and scooters. It operates with a small team of eight employees, with three handling finance and legal responsibilities, two in charge of sales and marketing, one managing HR and administration, and the remaining two overseeing operations.
Adding to the surprise is the grey market premium (GMP), which suggests a potential gain of nearly 90%. As of the latest update, the GMP was Rs 105, indicating an estimated listing price of Rs 222 per share, representing an expected gain of 89.74%.Resourceful Automobile, a Delhi-based two-wheeler dealership, has made headlines with its Rs 12-crore Initial Public Offering (IPO). The IPO has been oversubscribed 400 times, attracting bids worth Rs 4,800 crore. This unexpected response has left market experts baffled.
The Resourceful Automobile IPO was subscribed 418.82 times overall, with retail investors leading the charge at 496.22 times subscription. The "Other" category saw a 315.61 times subscription by August 26, 2024.
These figures are notably high for a Small Medium Enterprise (SME) IPO, leading to questions about what drove this level of interest.
The company, based in Delhi, specializes in the sale and servicing of Yamaha motorcycles and scooters. It operates with a small team of eight employees, with three handling finance and legal responsibilities, two in charge of sales and marketing, one managing HR and administration, and the remaining two overseeing operations.
Adding to the surprise is the grey market premium (GMP), which suggests a potential gain of nearly 90%. As of the latest update, the GMP was Rs 105, indicating an estimated listing price of Rs 222 per share, representing an expected gain of 89.74%.
