The initial public offering (IPO) of Resourceful Automobile, a prominent name in the automotive industry, has attracted significant interest from investors. The IPO, which opened for subscription on August 22, 2024, has been met with a strong response, being oversubscribed more than four times within just a few hours.
By early afternoon on August 22, investors had requested 45,14,400 shares, even though only 10,24,800 shares were available. This means there’s a lot more demand than supply, with people wanting 4.4 times the number of shares offered. Retail investors, in particular, are very keen, having bid for over eight times the shares available. They placed bids for 40,17,600 shares compared to the 4,86,600 shares on offer.
The IPO involves issuing 10.25 lakh shares at a total value of ₹11.99 crore, with each share priced between ₹117. The subscription period will end on August 26, 2024. After this, shares will be allocated on August 27, and they are expected to start trading on the BSE SME platform on August 29.
Currently, the grey market premium (GMP) for the IPO is around ₹80 per share. GMP is an unofficial indicator of how much more investors are willing to pay for the shares outside of the official market. A high GMP suggests strong interest and potential gains once the shares are officially listed. For this IPO, the GMP indicates that shares might list at around ₹197 each, which is a 68.4% increase over the IPO price of ₹117.
Before you invest, it’s crucial to research carefully. Look into the company’s financial health, growth potential, industry trends, and any possible risks. This will help you make smart investment choices that match your financial goals and risk tolerance.
The Resourceful Automobile IPO has attracted strong interest and has been oversubscribed. The high grey market premium also reflects positive sentiment towards the company. Investors should research carefully before making decisions and will be watching the IPO’s official listing on the BSE SME to see how the shares perform in the market.
