New Delhi: Resourceful Automobile, which has two showrooms and 8 employees, was in the news for the past few days due to oversubscription. Social media users were also divided into two camps regarding this. But, the IPO, which was oversubscribed by 418 times, completely disappointed the investors on listing.

How was the IPO listing?

Resourceful Auto's IPO was issued at a price of Rs 117. Its entry on BSE SME was flat, that is, it was listed at a price of Rs 117 and investors did not get any listing gain. On the contrary, after listing, the lower circuit caused further loss to the investors. It closed at Rs 111.15 (Resourceful Automobile Limited Share Price) with a lower circuit of 5 percent. This means that the investors who were allotted the IPO are now incurring a loss of 5 percent.

Resourceful Auto IPO Subscription

Delhi-based Resourceful Automobile had brought an IPO of Rs 12 crore. It was open for subscription from 22-26 August. It was subscribed 418.82 times overall. The portion reserved for retail investors was filled 496.22 times. Resourceful Auto will use the money raised from the IPO to open new showrooms in Delhi-NCR, repay loans, and meet working capital needs.

What does Resourceful Auto do?

Resourceful Automobile sells Yamaha two-wheelers under Sawhney Automobile. The company has two showrooms - one The Blue Square showroom in Dwarka and the other on Palam Road. Resourceful Auto had 8 permanent employees as of March 2024. The financial health of the company has continuously strengthened. Resourceful Auto has seen a big jump in revenue and profit. But, the debt on the company has also increased from Rs 2.70 crore to Rs 9.92 crore.