The recent BSE SME issue of Resourceful Automobile Limited IPO which ran from August 22 to August 26, 2024, has created a buzz in the market, grabbing headlines with its oversubscribed IPO.
Despite its modest scale, the Delhi-based company's IPO has been nothing short of a blockbuster, with investors pouring in bids worth Rs 4,800 crore for an issue size of Rs 12 crore. The high liquidity and oversubscription have left many puzzled, especially since the company has been dealing with financial challenges.
Moreover, it is intriguing to note that the motorbike dealer operates two Yamaha showrooms in New Delhi under the name 'Sawhney Automobiles' and employs just 8 people. Interestingly, the issue received bids worth Rs 4,800 crore, resulting in an oversubscription of over 418 times.
On Day 1, the subscription was 10.35 times, and on Day 2, it surged to 74.13 times.
1. Rahul Sawhney
Rahul Sawhney is the Promoter and Managing Director of our Company. | sawhneyauto
At the helm of Resourceful Automobile Limited is Rahul Sawhney, the Chairman and Managing Director. He has a Bachelor’s degree in Business Administration from IITM University, New Delhi.
According to reports, he has over seven years of experience in the motorbike industry.
2. Bindu Sawhney
Bindu Sawhney has been appointed to the Board of the Company as a Non-Executive Director. | sawhneyauto
Bindu Sawhney is the Director of Business Development and plays the role of acquiring new clients.
3. Megha Chawla
Appointed to the Board of the Company as a Non-Executive Director. | sawhneyauto
Megha Chawla is the Director of HR and Administration of the Resourceful Automobile. She holds a Bachelor’s degree in Education from Guru Gobind Singh Indraprastha University and has over four years of experience in HR and administrative management within the automobile sector.
.jpg)
According to the company’s red herring prospectus (RHP), the funds raised from the IPO will be used to expand operations by opening two new showrooms in the Delhi-NCR region, repay existing debt, and cover working capital needs. The allotment details will be announced on August 27 by Cameo Corporate Services.
About the company
The company was founded in 2018 and operates under the name Sawhney Automobiles. The company has two showrooms in New Delhi, one in Dwarka and another on Palam Road, and specialises in Yamaha two-wheelers.
The company’s offerings include commuter bikes, sports bikes, cruisers, and scooters.
