Resourceful Automobile is scheduled to hit the market on August 22, 2024 and close on August 26, 2024. Resourceful Automobile plans to raise around ₹11.99 Cr through an IPO with a sale of up to 1,024,800 equity shares of ₹10 each. The Retail offered 50%, Other Shares Offered 50%.
Resourceful Automobile Limited, founded in 2018, operates under the name “Sawhney Automobile,” specializing in Yamaha two-wheelers. The company provides a diverse selection of two-wheelers to meet various customer preferences, including commuter bikes, sports bikes, cruisers, and scooters from well-known manufacturers.
Currently, Sawhney Automobile features two conceptual showrooms with attached workshops. The Blue Square showroom in Dwarka, New Delhi, displays the full range of Yamaha two-wheelers, apparel, and accessories. Meanwhile, the Palam Road showroom in New Delhi offers a wide assortment of high-quality and unique two-wheelers, showcasing the latest Yamaha models along with a variety of motorcycles. As of July 31, 2024, the company employs a total of 8 permanent staff members.
Resourceful Automobile IPO Details
Resourceful Automobile IPO opens on August 22, 2024, and closes on August 26, 2024. The Listing date for Resourceful Automobile IPO is on August 29, 2024. The price band for IPO is ₹117 per share and lot size of 1200 Shares.
| IPO Date | August 21, 2024 to August 23, 2024 |
| Listing Date | August 28, 2024 |
| Price | ₹117 per share |
| Lot Size | 1200 Shares |
| Issue Size | ₹11.99 Cr |
| Face Value | ₹10 per share |
Resourceful Automobile IPO Tentative Timetable
Resourceful Automobile opening date is August 22, 2024 and close date is August 26, 2024. The IPO allotment date is August 27, 2024. Therefund initiation of IPO is on August 28, 2024. The credit of shares in demat account is on August 28, 2024. The listing date is on August 29, 2024.
| Event | Date |
|---|---|
| IPO Opening | August 22, 2024 |
| IPO Closing | August 26, 2024 |
| IPO Allotment Date | August 27, 2024 |
| Refund Initiation | August 28, 2024 |
| Shares Credit to Demat | August 28, 2024 |
| Lisiting Date | August 29, 2024 |
Resourceful Automobile IPO Lot Size
Lot Size of this IPO is 1200 shares. A retail-individual investor can apply for up to 1 lots (1200 shares or ₹140,400).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 1200 | ₹140,400 |
| Retail(Maximum) | 1 | 1200 | ₹140,400 |
| HNI (Minimum) | 2 | 2400 | ₹280,800 |
Resourceful Automobile IPO Promoter Holding
| Pre Issue Share Holding | 100.00% |
| Post Issue Share Holding | 61.41% |
Resourceful Automobile IPO Review
Resourceful Automobile Ltd. (RAL), operating as “Sawhney Automobile,” is an authorized dealership for Yamaha motorcycles and scooters. The company has built a reputation as a reliable place for bike lovers by offering quality products and great customer service. RAL does more than just sell bikes; they provide various services, including helping customers choose the right bike, arranging test rides, and offering financing options to make it easier for people to buy. They also have a modern service center with skilled technicians who take care of regular maintenance and repairs, ensuring that genuine spare parts are available for the vehicles they sell. The management team has significant experience, allowing RAL to take advantage of market opportunities while managing the challenges and competition in the two-wheeler industry.
In the last three years, RAL has shown inconsistent financial results, raising questions about its stability and growth potential. For FY21, the company earned ₹11.27 crore in revenue with a small net profit of ₹0.01 crore. In FY22, revenue increased to ₹12.50 crore, and net profit grew to ₹0.29 crore. In FY23, they reported ₹19.38 crore in revenue and ₹0.42 crore in net profit. However, during the 11 months ending February 29, 2024 (11M-FY24), they saw a significant increase in profit, reporting ₹1.52 crore on total revenue of ₹17.24 crore. This sudden rise has raised questions about how sustainable these earnings are. To support future growth, RAL is launching its first IPO, offering 1,024,800 equity shares at a fixed price of ₹117 each, aiming to raise ₹11.99 crore. The funds will help open a new showroom in Delhi/NCR, pay off debts, cover working capital needs, and other general expenses. Despite these plans, the IPO seems to be priced aggressively, suggesting it might be a high-risk investment with low potential returns.
The two-wheeler dealership market is very competitive and fragmented, which means RAL's future growth and profits are uncertain. While the company is working hard to maintain a strong online presence, engage with the biking community through events, and commit to being environmentally responsible, the financial ups and downs and the aggressive pricing of the IPO raise concerns for potential investors. Moreover, the small equity base after the IPO suggests that RAL may take longer to achieve substantial returns, especially as it aims to grow larger. The company has not declared any dividends since its start, adding to investor uncertainty. Therefore, while there is potential for growth and the management team has experience, investors might see this IPO as a high-risk opportunity with uncertain returns, leading them to approach it cautiously or even consider skipping it altogether.
Resourceful Automobile IPO Subscription Status (Bidding Details)
Table not foundResourceful Automobile IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Resourceful Automobile IPO FAQs
What is Resourceful Automobile IPO?
Resourceful Automobile is issuing 1,024,800 equity shares with a face value of ₹10 each, totaling up to ₹11.99 Cr. The shares are being offered at a price of ₹117 each, with a minimum order quantity of 1200 shares.
Cameo Corporate Services Limited is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Resourceful Automobile IPO will open?
Resourceful Automobile will open on August 22, 2024 for QIB, NII, and Retail Investors.
When Resourceful Automobile IPO will end?
Resourceful Automobile will end on August 26, 2024.
What is Resourceful Automobile IPO Size?
Resourceful Automobile IPO size is ₹11.99 Cr.
What is Resourceful Automobile IPO Price Band?
Resourceful Automobile price band is ₹117 per share.
What is the Resourceful Automobile IPO Allotment Date?
Resourceful Automobile allotment date is August 27, 2024.
What is the Resourceful Automobile IPO Listing Date?
Resourceful Automobile listing date is August 29, 2024. The IPO is to be listed on BSE and NSE.
How to Resourceful Automobile IPO through Zerodha?
To apply for the IPO “Resourceful Automobile” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Resourceful Automobile IPO through Upstox?
To apply for the IPO “Resourceful Automobile” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Resourceful Automobile IPO Allotment Status?
For Resourceful Automobile IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Resourceful Automobile IPO GMP?
You can check out here: Resourceful Automobile IPO GMP