Resourceful Automobile Limited specializes in the dealership of Yamaha two-wheelers under the showroom name “Sawhney Automobiles”. With a focus on sales and servicing of motorcycles and scooters, the company has built a reputation for quality products and exceptional customer service. The upcoming Initial Public Offering (IPO) is scheduled from August 22, 2024, to August 26, 2024. This article provides an in-depth look at the IPO's structure, financial performance, and investment insights.

IPO Details

The Resourceful Automobile IPO is a Fixed Price Issue amounting to ₹11.99 crores. The shares are priced at ₹117 each, with a minimum lot size of 1,200 shares. Retail investors need to invest at least ₹140,400, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹280,800 for 2,400 shares. The allotment of shares is expected to be finalized on August 27, 2024, with the listing set for August 29, 2024, on the BSE SME platform.

Grey Market Premium (GMP)

The Grey Market Premium for the Resourceful Automobile Limited IPO is anticipated to range between ₹50 and ₹55. GMP provides an informal indication of potential listing price but does not ensure actual performance. It is influenced by demand and supply in the unofficial market and is primarily for informational purposes.

Live Subscription Status

As of 4:33 PM on August 23, 2024, the IPO has been subscribed 25.28 times on its second day, reflecting a high level of investor interest. For real-time updates, investors can monitor the live subscription status on the BSE website.

Allotment Status

The allotment status for the IPO will be available on the registrar's website starting August 27, 2024. To check the status:

Visit the IPO allotment status page.

Select Resourceful Automobile Limited IPO from the dropdown list.

Enter the application number, PAN, or DP Client ID.

Submit the details to view the allotment status.

Company Overview

Resourceful Automobile Limited is led by Mr. Rahul Sawhney, Mrs. Bindu Sawhney, and Mrs. Megha Chawla, who bring over a decade of experience in the motorcycle industry. The company is recognized for its effective dealership operations and strong customer service.

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Financial Performance

The financial performance of Resourceful Automobile has shown stability and growth. Revenue increased from ₹1,127.26 Lakhs in FY21 to ₹1,938.26 Lakhs in FY23, with a current figure of ₹1,723.64 Lakhs in 11MFY24. EBITDA has also grown from ₹36.17 Lakhs in FY21 to ₹301.56 Lakhs in 11MFY24. PAT figures improved significantly from ₹0.16 Lakhs in FY21 to ₹152.24 Lakhs in 11MFY24.

The IPO offers shares with a pre-issue EPS of ₹9.33 and a post-issue EPS of ₹5.73. The pre-issue P/E ratio is 12.54x, while the post-issue P/E ratio is 20.41x, compared to the industry average. The company’s ROCE for 11MFY24 is 31.22%, indicating efficient capital use, while ROE is 0.93%.

Investment Recommendation

The Resourceful Automobile Limited IPO is expected to offer listing gains of 40% - 45%. Given the company's strong financial performance and fair pricing, it presents a promising opportunity for investors. It is advisable to consider this IPO for both short-term gains and long-term investment based on individual investment goals and risk tolerance.

Conclusion

The Resourceful Automobile Limited IPO stands out with its stable financial performance and potential for significant listing gains. Investors are encouraged to stay updated on the IPO’s progress and make decisions in line with their investment strategies and risk profiles.

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