For an IPO of Rs 12 crore, the subscription offers have been Rs 2,700 crore. And the company has only two Yamaha dealer showrooms and eight employees.
The public offering generated a stir on social media due to the subscription response from investors, despite a disappointing business model.
“IPO of a clever auto SME is crazy. Two Yamaha dealer showrooms, eight employees. The IPO was asking Rs 12 crore and received Rs 2,700 crore in bids. Is no one asking what is the final value of two dealer showrooms and eight employees?” said a Twitter user.
“Company with only two Yamaha showrooms “This is a company looking to raise funds and go public. I’m sure ChatGPT must make our lives easier, especially to explain such companies in 10-15 pages,” said another user. IPO Subscription SME IPO figures are not a new phenomenon, as retail and non-institutional investorsThe offers are multiplied by hundreds of times the value of the shares on offer. For instance, this year alone, more than 15 SME issues have received 400 or more subscriptions and the highest figure was over 2,000 times. Resourceful Automobile’s IPO is a greenfield share issue of 10.24 lakh shares and through the issue, it plans to raise Rs 12 crore. The company is offering its shares at Rs 117 apiece.
According to the RHP, Resourceful Automobile is engaged in the business of buying, selling and trading in automobiles, cars, trucks, buses, vans, motorcycles, cycle cars, motorbikes, carriages, amphibious vehicles and vehicles suitable for propulsion on land, sea or air or any combination thereof.
For the year ended February 2024, the company reported total revenue of Rs 16.53 crore and net profit of Rs 1.52 crore.
Swastika Investmart is acting as lead manager for the issue and Cameo Corporate Services is the registrar.
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