Investors Left Disappointed With Resourceful Auto Listing After IPO Attracted 5,000-Cr Bids

Resourceful Automobile made its stock market debut with a flat opening, listing at ₹117 per share on the BSE SME, which was exactly its issue price. This was below market expectations, as the shares were trading at a significant premium in the grey market prior to the listing. The grey market premium (GMP) was ₹105 per share, suggesting a potential listing price of ₹222 per share. Despite the strong grey market sentiment, the shares did not see a big boost on their first trading day. The IPO was open for subscription from August 22 to August 26 with the company planning to raise ₹12 crore. The markets and analysts were left shocked when the issue attracted more than ₹5,000 crore in bids with the IPO subscribed 420 times. The listing comes a day after SEBI warned investors of ‘pump and dump’ by several SME promoters.