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The initial public offering (IPO) of Resourceful Automobile has garnered significant investor interest, closing with an astounding oversubscription rate of nearly 400 times on its final day of subscription, Monday, August 26th. This remarkable response signifies strong market confidence in the company's future prospects and potential for growth.
By the end of the subscription period, Resourceful Automobile's IPO had attracted bids for a staggering 40,76,48,400 shares, against a total offering of 10,24,800 shares. This translates to an oversubscription ratio of 397.8 times, a testament to the overwhelming enthusiasm from investors. Notably, the retail investor segment exhibited particularly strong interest, with an oversubscription rate of 496.22 times, indicating a robust demand from individual investors.
The ₹11.99 crore IPO, entirely a fresh issue of 10.25 lakh shares, opened for subscription on Thursday, August 22nd and closed on Monday, August 26th. The price band for the offering was set at ₹117 per equity share. The allotment of shares is expected to be finalized on Tuesday, August 27th, with the shares anticipated to be listed on the BSE SME on Thursday, August 29th.
The company has outlined its plans to utilize the net proceeds from the IPO to expand its operations, primarily by establishing new showrooms in the Delhi/NCR region. A portion of the funds will also be allocated towards debt repayment, meeting working capital requirements, and general corporate purposes.
The grey market premium (GMP) for Resourceful Automobile's IPO currently stands at +105, indicating that the stock is trading at a premium of ₹105 in the grey market, according to investorgain.com. This positive sentiment reflects investors' willingness to pay a higher price than the IPO issue price, anticipating a strong listing performance.
Taking into account the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Resourceful Automobile shares is projected at ₹222 apiece, representing an 89.74 per cent increase from the IPO price of ₹117. The substantial GMP reflects a positive outlook among investors regarding the company's future prospects and potential value appreciation.
Overall, the resounding success of Resourceful Automobile's IPO, marked by an extraordinary oversubscription rate and a robust grey market premium, suggests a strong market confidence in the company's potential for growth and profitability. Investors are eager to capitalize on the opportunity to become shareholders in this burgeoning automotive venture.
Source: Resourceful Automobile IPO subscribed nearly 400 times on day 3; check GMP