The Rs 12 crore IPO of a company with only two showrooms was subscribed 400 times | News India

Mumbai: The IPO of Delhi-based company Resourceful Automobiles has raised 400 times Rs 12 crore, surprising the stock market. Investors have raised Rs 4800 crore to invest in the IPO of Resourceful Automobiles, which has only two showrooms of Yamaha bikes in Delhi and 8 employees. Resourceful Automobiles Limited has also made allotment to investors on Wednesday.

There is a suspicion that there is some scam behind the haste to invest in the IPO of a very ordinary company. There is a discussion in the corridors of the stock market that the promoters of the company have 'run' the IPO to earn money by getting it listed at a high price and have collected money in it even before the listing. There is a discussion that if there is a high listing, the promoters will earn a lot of money by selling their shares.

The company had offered 10.2 lakh shares at a price of Rs 117 per share. When the company's IPO opened on Thursday, August 22, no one would have thought that the IPO would get such a tremendous response. By the time the IPO closed on Friday, August 26, it had been subscribed 398 times. Resourceful Automobiles is a company from the Small Medium Enterprise (SME) sector. Usually the public issue of a company in the SME sector is subscribed 10 times but the IPO of Resourceful Automobiles has broken all records.

Retail investors have shown the most interest in the Rich Automobile IPO. The IPO has received 500 times oversubscription in the retail investment segment and investors have applied for about 24 crore shares. The shares have also been subscribed 150 times in the high net worth investors segment while 12 times in the institutional investors segment.

Mumbai-based Swastik Investments is the merchant banker for Resourceful Automobiles' IPO. Swastik Investments did not make any special plans and did nothing else to market Resourceful Automobiles' IPO, but the merchant banker was also surprised that the IPO received such a strong response. He also has no logical explanation as to why the IPO received such a strong response.