Resourceful Automobile IPO: An SME with 2 Yamaha showrooms and 8 staff gets bids worth ₹4,769 cr

In recent years, the Indian stock market has seen a record surge in Small and Medium Enterprises (SMEs) initial public offerings (IPOs), a trend that reflects investors' growing appetite for new stocks. In the first seven months of the calendar year 2024 (till July), as many as 144 SME companies raised ₹4,800 crore via the IPO route, which is the highest amount raised in any calendar year since the launch of the BSE's SME platform and NSE Emerge in 2012. Last year, 182 SME companies had raised ₹4,686 crore via the IPO route. The IPO market is witnessing strong interest from all three segments of investors – retail, qualified institutional bidders (QIB), and non-institutional investors (NII), which often translates into higher listing gains.

For instance, the ₹12-crore BSE-SME IPO of Delhi-based Resourceful Automobile, also known as Sawhney Automobiles, created history by attracting bids worth ₹4,768.88 crore. The IPO, having a market capitalisation of around ₹31 crore, received an overwhelming response from all categories of investors and was subscribed 418.82 times. The retail investors’ portion was subscribed 496.22 times, while the other quota (NII and QIB) was booked 315.61 times. The public issue, which opened for subscription between August 22-26, was entirely a fresh issue of 10.25 lakh shares at a price of ₹117 per share.

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