Resourceful Automobile's IPO Oversubscribed by 419 Times

Resourceful Automobile's Rs 12 crore initial public offering received bids worth nearly Rs 4,800 crore, showing an overwhelming subscription rate of 419 times. The Delhi-based company, specializing in Yamaha two-wheelers, plans to use the proceeds for expanding operations, repaying debt, and other corporate purposes amid regulatory concerns over SME investments.

Resourceful Automobile, a company with just two outlets and eight employees, managed a staggering feat in its recent Rs 12 crore initial public offering, drawing bids worth close to Rs 4,800 crore.

The company, operating under the name Sawhney Automobile, received overwhelming investor interest, with the IPO subscription hitting 419 times on the third day of bidding. This surge was especially notable in the non-institutional and retail investor categories, which saw subscription rates of 315.61 and 496.22 times, respectively.

Despite regulatory concerns about the risks in SME investments, Resourceful Automobile plans to use the proceeds for operational expansion, debt repayment, and other corporate goals, with shares set to list on the BSE's SME platform.