Jaspal Bhatti's PP Waterballs golgappa video meme gets viral as Delhi bike dealer's Rs 12 crore IPO gets Rs 5,000 crore subscriptions

Resourceful Automobile, a Delhi-based two-wheeler dealership, witnessed an unprecedented response to its Rs 12-crore Initial Public Offering (IPO), with bids reaching approximately Rs 4,800 crore. This translates to an oversubscription of nearly 400 times, leaving market experts puzzled. Reacting on the shocking response to the IPOs, social media users shared video of late comedian Jaspal Bhatti's flop show on IPOs.

Resourceful Automobile IPO Details and Market Reaction

The IPO offered 10.2 lakh shares at a fixed price of Rs 117 per share, and was open for subscription from August 22 to August 26. According to data from the Bombay Stock Exchange (BSE), by the close of the subscription window on Monday evening, bids had reached nearly 40.8 crore shares, resulting in a subscription rate of 398 times.

Swastika Investmart, the merchant banker for this issue, found the overwhelming interest in Resourceful Automobile's IPO unexpected. Retail investors showed the most enthusiasm, with aggregate demand reaching 24.1 crore shares, or nearly 500 times the retail portion offered. High net-worth investors' demand was also significant, at nearly 150 times the total offer size, while institutional investors subscribed to the offer 12 times.

Unexpected Turn of Events

The extraordinary subscription figures have left Dalal Street perplexed. A source familiar with the situation noted that the IPO was marketed like any other Small and Medium Enterprise (SME) IPO, which typically sees subscriptions in the range of 5 to 20 times. However, the actual numbers far exceeded expectations. "There's no reason for such high numbers," the source said, adding that the team is still trying to identify the applicants for the offer.

Reactions from the Industry

The unusual outcome of the IPO has sparked comments across the financial community. Veteran fund manager Samir Arora remarked on social media platform X, "Resourceful Automobile turned out to be resourceful indeed." Another user, under the handle @EquityInsightss, pointed out that the company's negative cash flow made the subscription figures appear "insane."