Astonishing news from the SME IPO world—Resourceful Automobile, a small Delhi-based bike dealership with just eight employees, has made headlines by receiving a staggering ₹4,800 crore in bids for their ₹12 crore IPO. This oversubscription, nearly 400 times the offer size, has left experts in awe.
Resourceful Automobile, which operates with only two showrooms, had offered 10.2 lakh shares at a fixed price of ₹117 each. The IPO opened on August 22 and closed on August 26, far exceeding expectations. By the closing day, the demand had skyrocketed to nearly 40.8 crore shares, translating to an unbelievable 398 times subscription.
Retail investors played a major role in this overwhelming response, demanding 24.1 crore shares—nearly 500 times the portion reserved for them. Even the institutional part was oversubscribed by 12 times.
This incredible demand far exceeded the predictions of merchant bankers, who had anticipated a subscription rate of “5-10 times”—a typical range for an SME IPO. Industry experts, including veteran fund manager Samir Arora, expressed surprise at the massive interest, with some even calling the response “insane.”
This event has undoubtedly set a new benchmark for SME IPOs, highlighting the potential of even small enterprises to capture the market’s attention when the timing and market sentiment align.
Where do you think this amount of money is coming from?
