The company IPOwhich was open for subscription from August 22 to 26, received an overwhelming response with bids amounting to Rs 40.76 crore. actions against 9.76 lakh shares on offer, translating to a subscription of 419 times on the third day of the bidding process, the data showed.
The SME IPO was subscribed 10.35 times on day 1 and 74.13 times on day 2.
Overall, the non-institutional investor category was subscribed 315.61 times, while retail investors showed even greater enthusiasm and subscribed 496.22 times.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial ServicesHe said that the demand The increased demand for SME shares has become absurd. In anticipation of a listing gain, capital inflows are increasing despite the quality of the paper. Oversubscription leads to a huge appreciation of the share price, which continues to shake the share price as demand remains high after the listing. “We can expect this kind of excessive enthusiasm to disappear in the medium term as demand increases.” stock market “The rally is consolidating,” he added. This frenzy came despite regulators raising concerns about the risks associated with investments in small and medium enterprises (SMEs). On Friday, Sebi whole-time member Ashwani Bhatia asked chartered accountants to be more diligent while auditing companies listed on SME exchange platforms.
In March, Sebi chairperson Madhabi Puri Buch had raised concerns over “price manipulation” in SME platform listings and transactions, and asked investors to be cautious.
The public issue of Resourceful Automobile comprised 10.25 lakh equity shares, priced at Rs 117 apiece, totalling an issue size of Rs 11.99 crore, according to the draft red herring prospectus.
The company intends to use the proceeds to expand its operations by opening new showrooms in Delhi/NCR, repaying debts and meeting additional work commitments. capital general corporate requirements and purposes.
As of December 28, 2023, the company operates through its network of 2 showrooms and has a total of 8 employees, preliminary documents showed.
The company’s shares are scheduled to be listed on the SME platform of the BSE.
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