A Rs 12 crore IPO for Resourceful Automobile, a Delhi- based two-wheeler car dealership with simply 2 display rooms and 8 workers, saw proposals amounting to about Rs 4,800 crore, leading to an oversubscription of almost 400 times.
A report in Times of India claimed that the uncommonly high degree of rate of interest in this little to tool business IPO befuddled Dalal Street also as the deal’s seller lender battled to clarify the shocking focus.
As per the record, the business provided 10.2 lakh shares at a set price of Rs 117 with the problem opening on August 22 and shutting on August 26. However, at the closing of membership home window on August 26 (Monday), the BSE information revealed proposals accumulating almost 40.8 crore shares. This amounts 398 times the membership.
Retail capitalists were one of the most curious about the business show accumulated need of 24.1 crore shares. Delhi- based Swastika Investmart is the seller lender to the problem.
The high membership numbers have actually left specialists surprised. Meanwhile, individuals on X (previously Twitter) are explaining just how the numbers are “insane” for a venture with “negative cash flow”.
People also made pun on the name of the enterprise as one user wrote, “Resourceful Automobile ended up being clever certainly.”
Resourceful Automobile was begun in the year 2018. The business markets two-wheelers under ‘Sawhney Automobile’. Sawhney Automobile provides a vast array of two-wheelers according to the demands of various clients.
The business presently has 2 display rooms with affixed workshops. One display room of the business remains in Blue Square Dwarka, New Delhi while the 2nd display room of the business remains in Palam Road,New Delhi As per the information till July 31, 2024, the business has an overall of 8 long-term workers.
Published 27 August 2024, 10:11 IST
