BSE SME Resourceful Automobile climbs on debut

The scrip was listed at Rs 117, at par with the initial public offer (IPO) price. The stock was frozen in its upper limit of 5% over its listing price.

The counter hit a high of Rs 122.85 and a low of Rs 111.15. About 4.63 lakh shares of the company changed hands at the counter.

The IPO of Resourceful Automobile, which operates two Yamaha showrooms in Delhi, was subscribed 397.78 times. The issue opened for bidding on 22 August 2024 and it closed on 26 August 2024. The price of the IPO was set at Rs 117 per share.

The IPO comprised fresh issue of 10,24,800 shares. The promoter and promoter group shareholding diluted to 61.41% from 100% pre-IPO.

The company intends to utilize the net proceeds for expansion of the company by opening of new showrooms in Delhi/ NCR, repayment of debt, to meet incremental working capital requirements, general corporate purpose.

Resourceful Automobile is a dealership for Yamaha two-wheelers, operating under the showroom name Sawhney Automobile in New Delhi. It specializes in the sales and servicing of motorcycles and scooters. With two showrooms and a dedicated workshop, it offers a comprehensive range of Yamaha products and services. The company's Blue Square showroom in Dwarka, New Delhi, showcases the entire Yamaha lineup, including motorcycles, scooters, apparel, and accessories. For those seeking premium and distinctive two-wheelers, its Palam Road, New Delhi showroom offers the latest and most sought-after Yamaha models. As on 31 July 2024, the company has 8 employees.

The company recorded revenue from operations of Rs 16.53 crore and net profit of Rs 1.52 crore for the eleven months ended as on 29 February 2024.