Resourceful Automobile IPO: The initial public offering (IPO) of Resourceful Automobile received strong investor interest, with the issue being oversubscribed almost 400 times on the final day of subscription on Monday, August 26.
By 7 pm on Monday, BSE data showed that the SME IPO had received total bids for 40,76,48,400 shares, compared to the 10,24,800 shares on offer, resulting in a subscription of 397.8 times. The retail investor segment had been subscribed by 496.22 times, receiving bids for 24,14,62,800 shares against 4,86,600 offered.
The ₹11.99 crore Resourceful Automobile IPO, which was entirely a fresh issue of 10.25 lakh shares, opened for subscription on Thursday, August 22 and closed on Monday, August 26. The price band for the Resourceful Automobile IPO was set at ₹117 per equity share.
The allotment of shares is expected to be finalised on Tuesday, August 27, and the shares may be listed on the BSE SME on Thursday, August 29.
Cameo Corporate Services is the registrar for the issue, while Swastika Investment is the book-running lead manager.
The company intends to use the net proceeds of the issue to expand its business by opening new showrooms in Delhi/NCR. It will also use some parts of the proceeds to repay its debt, meet working capital requirements, and for general corporate purposes.
Resourceful Automobile IPO's last grey market price was +105. This indicates the stock was trading at a premium of ₹105 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Resourceful Automobile share price was indicated at ₹222 apiece, which is 89.74 per cent higher than the IPO price of ₹117.
GMP indicates investors' readiness to pay more than the issue price.
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