Resourceful Automobile IPO: Review, Valuation, Date & GMP

Resourceful Automobile IPO-Complete Overview

Resourceful Automobile IPO an SME IPO is a fixed price issue of Rs.11.99 crore by Resourceful Automobile Ltd. which was founded in 2018. It sells Yamaha two-wheelers under the brand name “Sawhney Automobile”. Sawhney Automobile provides a wide selection of two-wheelers to meet the demands and desires of its diverse clientele. Prominent manufacturers' cruisers, sports bikes, scooters, and commuter bikes are all included in the selection.

Presently the company operates two conceptual showrooms that are connected to a workshop. The full selection of Yamaha two-wheelers, apparel, and accessories is on display at the Blue Square shop in Dwarka, New Delhi, and another showroom is located on Palam Road. This store has a large selection of unique and high-quality two-wheelers, including the newest Yamaha India models and a varied assortment of motorbikes.

The company plans to launch its SME IPO on August 22, 2024.

Resourceful Automobile IPO Overview

The Rs.11.99 crore Resourceful Automobile Ltd. IPO consists of a wholly fresh issue of 10.25 lac Shares, out of which 50% is to retail investors, and 50% to other investors portion is reserved.

This SME IPO date is from August 22 to August 26, 2024. The expected IPO listing date is Thursday, August 29, 2024, on BSE and SME. The Resourceful Automobile IPO price band is Rs.117 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

Below is the synopsis of the company's financial data for the period that concluded on 29 Feb 2024.

• The total assets of the company are Rs.1,451.41 lac.

• The total revenue of the company is Rs.1,723.64 lac.

• PAT of the company is Rs.152.24 lac.

• The net worth of the company is Rs.315.78 lac.

• The company’s EBITDA is Rs.301.56 lac.
  
  

(Amount in Lac)

 

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Segment-wise Revenue Breakdown

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To continue the company's expansion by building new showrooms in Delhi and the NCR.

• To repay the debt.

• To meet escalating needs for working capital.

• General corporate purposes & public issue expenses.

Peers of Resourceful Automobile Ltd. 

There are no such listed companies of the comparable size involved in this category as mentioned in the company’s RHP.

Evaluation

The IPO price is Rs.117 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 29 Feb 2024 with an EPS of Rs.9.33 from the last year, the resulting P/E ratio is 12.54x.

Considering the weighted EPS of Rs.4.06 for the last three years, the P/E ratio is 28.82x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is not available in the DRHP & RHP of the company.

IPO's Strengths 

• Skilled Promoter and Management Team

• Product Selection and High-Quality Service

• The company specializes in high-end motorcycles and expensive scooters that cater to the country's wealthy individuals.

• Sawhney Automobile has established relationships with top motorbike manufacturers. As an authorized Yamaha India dealer, the company guarantees not only a wide selection of products but also a dedication to high-quality service.

• In order to ensure accessibility and high-quality service in the digital age, its user-friendly website acts as an informational center, providing information about products and specials & a convenient platform for online inquiries.
  
  

IPO’s Weaknesses

• With effect from February 5, 2024, the company has transferred all of its outstanding loans from Hero Fincorp Limited, NBFC to Deutsche Bank AG. After the company filed the Draft Proposal with the exchange, the borrower's objections to the issue were changed. The absence of an impartial monitoring agency could harm operations and sustainability in the event of a major departure from the object.

• Its Yamaha dealership provides with a sizable amount of the company's revenue (Commercial). Any unfavorable changes to these OEMs' sales, growth, or demand could harm the company's operations, financial situation, and business outcomes.

• The automotive sector is susceptible to shifting macroeconomic conditions as well as several other factors. Any decrease in the number of automobiles that people or organizations desire could harm its commercial prospects.

• Its profit margins on vehicle sales and related industries are being eroded by the growing competition among car dealerships through online and offline marketing.

• The OEMs' marketing, incentives, and other initiatives affect its car sales.
  
  

Resourceful Automobile IPO GMP Today

Resourceful Automobile IPO GMP today is Rs.55.

IPO Timetable (Tentative)

The IPO date is from August 22 to August 26, 2024, with allotment on August 27, refund initiation on August 28, and listing on August 29, 2024.

 

 

Resourceful Automobile IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 22, 2024, close on August 26, 2024, and offer a total issue size of 1,024,800 Shares (aggregating up to Rs.11.99 Cr) comprising a whole fresh issue size of 1,024,800 Shares (totaling up to Rs.11.99 Cr).

Resourceful Automobile IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.140,400 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.280,800.

 

Resourceful Automobile IPO Reservation

 

 

Promoters And Management of Resourceful Automobile Ltd.

• Mr. Rahul Sawhney

• Mrs. Megha Chawla

• Mrs. Bindu Sawhney
  
  

 

IPO Lead Managers

• Swastika Investmart Ltd.
  
  

Dividend Policy

The company has not declared dividends since incorporation.

Conclusion

The company has experienced negative cash flow in operating and investing activities in the last fiscal years. The company’s total assets, net worth, reserves & surplus, and PAT have increased in the period FY 31 Mar 2023 to 28 Feb 2024, but total borrowings have also increased. So the company has performed well in terms of gaining net worth, PAT, reserves & surplus, etc but the other side borrowings are constantly increasing since the last 3 FYs. To achieve its goals, the company is currently launching an IPO for the general public

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!
Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.