Resourceful Automobile IPO fully subscribed within hours of launch: Check key details before bidding

The buzz around initial public offerings (IPO) is getting stronger, with another Small and medium enterprise (SME) issue receiving a solid response on the first day of bidding.

Resourceful Automobile Limited's IPO opened for subscription on Thursday, August 22, and the BSE SME issue was fully subscribed within hours of launch.

According to the stock exchange data, the Resourceful Automobile's IPO was subscribed nearly 7.5 times by 2:40 pm. The IPO received bids for more than 73.12 lakh shares compared to 9.73 lakh shares on offer.

Retail investors led the company's IPO subscription with bids for more than 63.39 lakh shares against 4.86 lakh shares set aside for the category. The retail portion was booked 13 times.

Non-institutional investors’ quota was also booked two times with applications for 9.73 lakh shares against 4.86 lakh shares set aside for the category.

If you want to place your bids for the company's shares too, here are all the important details you should know beforehand about the issue.

Resourceful Automobile IPO price band

The Resourceful Automobile's IPO is a fixed-price issue that aims to raise a total of ₹11.99 crore. It is entirely a fresh issuance of 10.25 lakh shares, with no offer-for-sale (OFS) component.

Shares in the company's IPO are being offered at ₹117 apiece. The minimum bid quantity, or lot size, for an application is 1,200 shares. This aggregates into a minimum investment amount of ₹1.4 lakh for retail investors, and ₹2.8 lakh for high net-worth investors that need to mandatorily bid for a minimum of 2 lots (2,400 shares).

The company has appointed Swastika Investmart Ltd as the book-running lead manager of the IPO, while Cameo Corporate Services Ltd has been hired as the registrar for the issue. The market maker for the IPO is Nikunj Stock Brokers.

Resourceful Automobile IPO dates

Bidding for the Resourceful Automobile's IPO starts on August 22 and ends on August 26. The IPO allotment status is expected to be finalised on August 27.

Successful bidders who are allotted shares can expect them to be credited to their respective Demat accounts by August 28. Refunds would be initiated to unsuccessful bidders on the same day.

The company's stock will list on the BSE SME platform on August 29.

Resourceful Automobile key financials

In the 11 months ended February 2024 of financial year 2023-24, Resourceful Automobile reported revenue of ₹17.24 crore compared with ₹19.4 crore for the full financial year 2022-23. Its profit after tax (PAT) during the 11 months of FY24 stood at ₹1.5 crore compared with a profit of ₹41.5 lakh in full FY23.

Resourceful Automobile IPO objective

The company has said that the proceeds from the fresh issue will be utilised to carry out the expansion of the company by opening new showrooms in Delhi-NCR. A portion of the funds will also be used to repay debt and to meet incremental working capital requirements. The company will allocate some funds for general corporate purposes and to meet public issue expenses.

About Resourceful Automobile

Resourceful Automobile Limited was founded in 2018. The company serves as a premier dealership specializing in Yamaha two-wheelers and trades under the name ‘Sawhney Automobile’.

From commuter bikes and sport bikes to cruisers and scooters, the dealership provides access to the latest Yamaha models and authentic spare parts.

At present, the company has two conceptual showrooms with an attached workshop. The Blue Square showroom in Dwarka, New Delhi, showcases the entire range of Yamaha two-wheelers, apparel, and accessories.