The shares of Resourceful Automobile witnessed a muted stock market debut on August 29 after being listed at Rs 117, which was the issue price of Rs 117 on the BSE SME platform.
The public offer worth Rs 12 crore attracted a lot of attention as bids were received for 40.76 crore shares against the availability of only 9.76 lakh shares, resulting in 419 times oversubscription during the three-day offer period. Interestingly, the Delhi-based company operates only two branches and has just eight employees.
The listing gains completely missed the estimates of the grey market, where the shares traded at a premium of 89 percent. The grey market is an unofficial ecosystem where shares are traded well before the offer opens for subscription and remain in trading till the day of listing.
Founded in 2018, Resourceful Automobile Limited operates under the brand “Sawhney Automobile” and offers a comprehensive range of Yamaha two-wheelers including commuter bikes, sports bikes, cruisers and scooters. The company has two conceptual showrooms, each with an attached workshop. The Blue Square showroom in Dwarka, New Delhi, showcases the entire range of Yamaha two-wheelers along with apparel and accessories. The second showroom is located on Palam Road in New Delhi.