SME IPO shocker: Two-showroom bike dealer got 400x subscription but lists flat
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Shares of Resourceful Automobile, which buys and sells automobiles, listed flat on the BSE SME platform at Rs 117. The Rs 12 crore SME IPO made headlines for its strong subscription, despite the company currently operating just two Yamaha showrooms. However, ahead of the listing, the company's shares traded at a GMP (Grey Market Premium) of 89% above the offer price. The IPO, which was completely a fresh equity sale of 10.24 lakh shares, was subscribed nearly 400 times, driven by robust demand across categories. The company proposes to use the net proceeds from the public offer for expansion by opening new showrooms, repayment of debt, and other general corporate purposes. The company claims to engage in the business of buying, selling, and dealing in, automobiles, motorcars, lorries, buses, vans, motorcycles, cycle-cars, motor, scooters, carriages, amphibious vehicles, and vehicles suitable for propulsion on land, sea, or in the air ...