Resourceful Automobile shares hit 5% upper after flat listing, recover 10.5% from day’s low in debut trade

The stock hit the 5% lower circuit after listing, but soon recovered 10.5% from the day’s low to hit the upper circuit limit.

At the end of the session, the total traded volume of the stock stood at 5.45 lakh, with the trading value amounting to ₹6.41 lakh. Resourceful Automobiles' market capitalisation stood at ₹32.63 crore.

The Delhi-based auto dealer's initial public offering (IPO) caught the attention of investors, as the public offer attracted bids worth ₹4,800 crore. The massive demand for the company's shares, with just 8 employees and two showrooms in Delhi, surprised the market experts.

The IPO was booked nearly 419 times on strong retail demand.

The ₹11.99-crore BSE SME issue comprised an entirely fresh issue of 10.25 lakh shares. The IPO price was fixed at ₹117 apiece.

The Resourceful Automobile IPO was open for subscription from August 22 and August 26.

Founded in 2018, Resourceful Automobile sells Yamaha two-wheelers. The company operates under the name ‘Sawhney Automobile’ and has two outlets in Dwarka and Palam in the National Capital. The Blue Square showroom in Dwarka sells Yamaha two-wheelers, apparel, and accessories.