The Resourceful Automobile Limited IPO, held from August 22 to August 26, 2024, marked an important milestone for the company and the SME segment in India. With a fixed issue size of ₹11.99 crores and an offering of 10.25 lakh shares, this IPO garnered significant attention. It reflects the immense potential of the SME market, and companies planning their growth trajectory can learn valuable lessons from this IPO journey.
Here, we provide a comprehensive analysis of the IPO and why StartupLanes is the ideal partner for startups and SMEs looking to list their companies and achieve sustainable growth.
Key Highlights of Resourceful Automobile IPO
| Parameter | Details |
|---|---|
| IPO Type | Fixed Price |
| Price per Share | ₹117 |
| Issue Size | ₹11.99 Crores |
| Lot Size | 1200 Shares |
| Minimum Investment (Retail) | ₹140,400 |
| Market Maker | Nikunj Stock Brokers |
| Listing Exchange | BSE SME |
| Promoters | Rahul Sawhney, Megha Chawla, Bindu Sawhney |
Timeline of Events
| Event | Date |
|---|---|
| IPO Open Date | August 22, 2024 |
| IPO Close Date | August 26, 2024 |
| Allotment Finalized | August 27, 2024 |
| Refund Initiation | August 28, 2024 |
| Listing Date | August 29, 2024 |
IPO Subscription Details
The IPO was oversubscribed 418.82 times, with impressive participation in the retail and HNI categories:
| Category | Subscription (Times) |
|---|---|
| Retail Investors | 496.22 |
| HNI Investors | 315.61 |
| Total | 418.82 |
This overwhelming response underlines the confidence of investors in SME IPOs and the growth story of Resourceful Automobile.
Company Financials (Restated)
| Metric (₹ Lakhs) | 29-Feb-2024 | 31-Mar-2023 | 31-Mar-2022 | 31-Mar-2021 |
|---|---|---|---|---|
| Assets | 1,451.41 | 1,000.49 | 1,008.58 | 429.46 |
| Revenue | 1,723.64 | 1,938.26 | 1,250.10 | 1,127.26 |
| Profit After Tax (PAT) | 152.24 | 41.50 | 28.73 | 0.16 |
| Net Worth | 315.78 | 163.56 | 74.78 | 46.05 |
Despite operating in a competitive two-wheeler dealership market, the company has demonstrated robust growth in assets, revenue, and profitability.
The Book Running Lead Manager (BRLM) for the Resourceful Automobile IPO was Swastika Investmart Ltd, a reputable firm known for its extensive expertise in managing IPOs, particularly in the SME segment. Their role encompassed guiding the company through the IPO process, coordinating with regulatory authorities, ensuring compliance, and effectively marketing the issue to attract investor interest. Swastika’s experience in the SME sector helped Resourceful Automobile gain significant visibility and achieve a remarkable subscription rate of over 418 times, showcasing their ability to connect with the right investor base and enhance the credibility of the offering.
Opportunities for SMEs and Startups: Why Choose StartupLanes?
Resourceful Automobile’s IPO highlights the power of listing as a growth strategy for SMEs. However, navigating the complex IPO process can be challenging. StartupLanes is here to simplify and accelerate your IPO journey.
What StartupLanes Offers:
- End-to-End IPO Support: From market research to regulatory compliance and listing.
- Network of Investors: Tap into a robust network of angel investors, venture capitalists, and institutional investors.
- SME IPO Expertise: Gain insights and strategies tailored for SME listings.
- Brand Visibility: Enhance your brand presence and attract long-term investors.
Motivational Case Study: Why List Your Company Now?
Take inspiration from Resourceful Automobile. Starting with just two conceptual showrooms and operating in a highly competitive market, they used the IPO route to expand and strengthen their business. With their funds, they plan to open new showrooms, repay debts, and bolster working capital.
Imagine the growth your company could achieve with the right partners. Listing on the stock exchange with guidance from StartupLanes could be your first step toward exponential growth.
Why SME IPOs Are the Future?
- Access to Capital: IPOs provide immediate and substantial funds for expansion.
- Enhanced Credibility: Listing improves transparency and builds trust among stakeholders.
- Liquidity for Stakeholders: Enables founders and early investors to partially monetize their holdings.
- Market Visibility: Positions your company as an industry leader.
Conclusion: Take the Leap with StartupLanes
The Resourceful Automobile IPO is a testament to the power of SME listings. With a well-structured plan, proper financials, and guidance from experienced partners like StartupLanes, your company can emulate or even surpass this success story.
Don’t wait for the right time—create it. Join hands with StartupLanes and pave the way for your IPO journey. Contact us today to explore the limitless possibilities of listing your company!