4,800 crore rupees for a bike dealership with just two showrooms. Find it unbelievable? Then buckle up for the craziest stock market story of the year!
Delhi based Resourceful Automobile's has done the unimaginable. The IPO of motorbike dealer Sawhney Automobiles, which operates two Yamaha showrooms in New Delhi and employs just eight people, was oversubscribed by 418.27 times on the third day of bidding.
The SME IPO saw a subscription rate of 10.35 times on Day 1 and 74.13 times on Day 2. They asked the investors for a cool 12 crore rupees... But guess what? The SME IPO got showered with bids worth 4,800 crore rupees!
According to the company's red herring prospectus (RHP), Resourceful Automobile plans to use the IPO funds to expand its operations by opening two new showrooms in the Delhi-NCR region, repay debt, and cover working capital needs.
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