Resourceful Automobile Shares Hit 5% Upper Circuit After Flat Listing
The Resourceful Automobile IPO listing failed to garner much interest at Dalal Street despite a robust subscription.
Shares of Resourceful Automobile Ltd., which floated its initial public offering last week, rallied up to 5% to hit an upper circuit limit at Rs 122.85 apiece on BSE. This comes after the company made a muted debut on Thursday as the stock listed flat at Rs 117 apiece on the BSE SME platform.
The Resourceful Automobile IPO listing failed to garner much interest at Dalal Street despite a robust subscription. The offering, valued at Rs 12 crore, attracted massive bids of around Rs 4,800 crore. The issue was booked 419 times, with bids for 40.76 crore shares against the 9.76 lakh shares available.
Retail investors led the subscription rate, booking their category allocation over 496 times.
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The Resourceful Automobile IPO opened on Aug. 22 and the shares were up for bidding till Aug. 26. The share allotment status was fixed on Aug. 27, while credit to the demat account was done on Aug. 28. The listing date was fixed on Aug. 29.
The offering's price band was fixed at Rs 117 per share. The company looked to raise Rs 11.9 crore from the market, through a fresh issue of 10.25 lakh shares in the IPO.
The minimum application lot size for the IPO was 1,200 shares, meaning that retail investors invested a minimum of Rs 1.4 lakh to bid for the shares.
Established in 2018, Resourceful Automobile Ltd. operates under the name Sawhney Automobile. The company sells Yamaha two-wheelers, including commuter bikes, sports bikes, cruisers, and scooters. It has two conceptual showrooms in New Delhi, one in Dwarka and the other one in Palam.
Resourceful Automobile plans to use the proceeds from its IPO to expand its operations by opening new showrooms in the Delhi/NCR and repaying existing debts.
