Resourceful Automobile Ltd has launched its initial public offering (IPO) on August 22, 2024. This small and medium-sized enterprise (SME) IPO offers an exciting opportunity for investors to participate in a company specializing in Yamaha two-wheelers. Here’s a detailed look at the IPO's subscription status, use of funds, and other important details.

IPO Subscription Status

The Resourceful Automobile IPO has seen substantial interest from investors. On the second day of bidding, the IPO was subscribed an impressive 25.28 times by 11:47 a.m. on Friday. Here’s a breakdown of the subscription status:

i. Non-Institutional Investors (NIIs): The portion reserved for NIIs was subscribed 8.52 times.

ii. Retail Investors: The retail portion was highly oversubscribed, with a subscription rate of 42.03 times.

This level of subscription reflects strong market confidence and interest in the company’s prospects.

IPO Details

* Opening Date: The IPO opened for subscription on August 22, 2024.

* Closing Date: The subscription period will close on August 26, 2024.

* Allotment Date: The allotment of shares is expected to be finalized on August 27, 2024.

* Listing Date: The shares are anticipated to be listed on the BSE SME platform on August 29, 2024.

* Issue Price and Lot Size

* Issue Price: The shares are priced at ₹117 each.

* Lot Size: The minimum application lot size is 1,200 shares, requiring a minimum investment of ₹140,400 for retail investors. High Net-Worth Individuals (HNWIs) need to apply for at least 2 lots, totaling 2,400 shares and an investment of ₹280,800.

Use of Funds

The funds raised from the IPO will be allocated to several key areas:

* Expansion: Opening new showrooms in the Delhi/NCR region to enhance the company's footprint and market reach.

* Debt Repayment: Reducing existing debt to strengthen the company’s financial position.

* Working Capital: Meeting incremental working capital requirements to support ongoing operations.

* General Corporate Purposes: Covering various general corporate expenses and public issue costs.

Company Overview

Resourceful Automobile Ltd, established in 2018, operates under the brand name Sawhney Automobile. The company is engaged in the sale of Yamaha two-wheelers, including commuter bikes, sports bikes, cruisers, and scooters. It operates two conceptual showrooms in New Delhi—one in Dwarka, known as the Blue Square showroom, and another on Palam Road. These showrooms feature a diverse range of Yamaha products and accessories, catering to different customer needs.

The company uses advanced technology and offers a modern showroom experience to its customers. Resourceful Automobile’s peers include established players in the automotive retail sector.

IPO Management

i. Book-Running Lead Manager: Swastika Investmart Ltd is managing the IPO process.

ii. Registrar: Cameo Corporate Services Limited is responsible for handling IPO applications and allotments.

iii. Market Maker: Nikunj Stock Brokers will act as the market maker to ensure liquidity and smooth trading of shares.

Conclusion

The Resourceful Automobile IPO has garnered significant interest, with a strong subscription rate and a well-defined use of funds. As the IPO progresses towards its closing date, investors will be watching closely to see how the shares perform upon listing. The company’s focus on expanding operations and repaying debt positions it for future growth and stability in the competitive automotive sector.

Also Read : Ideal Technoplast Industries IPO Subscribed 11 Times on Day Two

Check latest IPO Review & analysis, Live GMP today, Live Subscription Status Today, Share Price, Financial Information, latest IPO news, Upcoming IPO News before applying in the IPO. The Upcoming IPOs in this week and coming weeks are Indian Phosphate Limited. The current active IPO is Rapid Multimodal Limited, Resourceful Automobile Limited, Ideal Technoplast Industries Limited, QVC Exports Lmited, Orient Technologies Limited.

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