Resourceful Automation Limited is launching an IPO with a fresh issue of 10,24,800 shares worth INR 11.99 crores. The company aims to open new showrooms in Delhi and NCR, repay its debt, and meet the incremental working capital requirement and general corporate purposes.
Resourceful Automobile Limited IPO – Important Dates
| Resourceful Automobile Limited IPO Date | August 22, 2024 to August 26, 2024 |
| Resourceful Automobile Limited IPO Listing Date | August 29, 2024 |
| Resourceful Automobile Limited IPO Price | INR 117 per share |
| Resourceful Automobile Limited IPO Lot Size | 1200 Shares |
| Resourceful Automobile Limited IPO Total Issue Size | INR 11.99 crores |
| Resourceful Automobile Limited IPO Basis of Allotment | August 27, 2024 |
| Resourceful Automobile Limited IPO Initiation of Refunds | August 28, 2024 |
| Resourceful Automobile Limited IPO Credit of Shares to Demat | August 28, 2024 |
| Resourceful Automobile Limited IPO Issue Type | Fixed Price Issue |
| Resourceful Automobile Limited IPO Listing At | BSE SME |
Resourceful Automobile Limited IPO – Company Profile
The Company is actively involved in the dealership of the two-wheeler bikes Yamaha, operating under the showroom name “Sawhney Automobile”. Specializing in the sales and servicing of motorcycles and scooters, with quality products and exceptional customer service, making it a trusted destination for motorcycle enthusiasts.
Sawhney Automobile caters to a diverse range of customer preferences and needs by offering a comprehensive selection of two-wheelers. The inventory encompasses commuter bikes, sport bikes, cruisers, and scooters sourced from reputable manufacturers.
Resourceful Automobile Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 29 February 2024 |
| Revenue (₹ in lakhs) | 1,250.10 | 1,938.26 | 1,723.64 |
| Equity (₹ in lakhs) | 74.78 | 163.56 | 315.78 |
| Expenses (₹ in lakhs) | 1,211.49 | 1,878.37 | 1,518.65 |
| Profit and Loss After Tax (₹ in lakhs) | 38.61 | 59.89 | 204.99 |
| Diluted EPS only (₹) | 5.75 | 4.27 | 9.33 |
| Return on Net Worth (%) | 38.42 | 25.37 | 48.21 |
| NAV per Equity Share (₹) | 14.96 | 16.81 | 19.36 |
| Total Assets (in lakhs) | 1,008.58 | 1,000.49 | 1,451.41 |
| Total Liabilities (in lakhs) | 933.80 | 836.93 | 1,135.63 |
| Debt Equity Ratio | 9.01 | 4.57 | 3.14 |
| Current Ratio (in times) | 2.35 | 5.68 | 2.80 |
| Inventory Turnover Ratio | 4.23 | 4.06 | 2.88 |
Resourceful Automobile Limited IPO Financial Analysis
Resourceful Automobile shows strong profitability and reduced debt, but the slight revenue decline and decreasing inventory turnover warrant caution. Overall, the financials indicate a potential investment opportunity, but monitoring revenue trends is essential.
- Revenue: Slight decrease in the latest period (₹1,723.64 lakhs) compared to the previous year (₹1,938.26 lakhs), indicating some revenue volatility.
- Equity: Strong growth in equity from ₹74.78 lakhs in 2022 to ₹315.78 lakhs in 2024, reflecting financial strengthening.
- Profit and Loss: Significant increase in profit after tax to ₹204.99 lakhs in 2024, showing improved profitability.
- Return on Net Worth: Improved to 48.21% in 2024, indicating strong returns for shareholders.
- Debt Equity Ratio: Decreased from 9.01 in 2022 to 3.14 in 2024, reflecting reduced financial leverage.
- Current Ratio: Declined but remains above 2, indicating adequate liquidity.
- Inventory Turnover Ratio: Decreasing trend, suggesting slower inventory movement.
Resourceful Automobile Limited IPO Peer Comparison
There are no listed companies in India whose business portfolio is comparable with that of the company’s business and comparable to the company’s scale of operations.
Resourceful Automobile Ltd IPO Objective
The main objectives of Resourceful Automobile are to expand operations by opening new showrooms (INR 2.16 crores), repay Deutsche Bank loans (INR 4.55 crores), and meet working capital and general corporate needs.
- New Showrooms in Delhi and NCR: To expand the capacity, the company intends to utilize INR 2.16 crores from the Issue Proceeds to expand the existing operations by opening new showrooms and for the creation of infrastructure facilities, purchase of equipment/stock, other assets, etc
- Repayment of Debt: The company proposes to utilize INR 4.55 crores from the Net Proceeds towards the repayment/prepayment of certain Secured term loans of Deutsche Bank availed by the Company.
- Working Capital Requirement: The Net Working capital requirement as of 31st March 2025 is estimated to be INR 12.54 crores. The Company will meet the requirement to the extent of INR 3.36 crores from the Net Proceeds of the Issue and balance from borrowings and internal accruals at an appropriate time as per the requirement.
- General Corporate Purpose: The company will allocate the balance funds to general corporate goals, including strategic initiatives, brand building, addressing unforeseen contingencies, and other purposes to support overall business growth and operations.
Resourceful Automobile Limited IPO Risks And Challenges
- A large portion of the business revenue is derived from the dealership of Yamaha (Commercial). Any adverse developments in the growth, demand, or sales for these OEMs could have an adverse effect on the business, results of operations, and financial condition.
- The automotive industry is sensitive to changing economic conditions and various other factors. Any decline in demand for vehicles by individuals or entities may adversely impact the business prospects and results of operations.
- The Company had negative cash flows in recent fiscals. Sustained negative cash flow could adversely impact the business, financial condition, and results of operations.
Resourceful Automobile Ltd IPO – Industry & Market Potential
The Indian two-wheeler industry has witnessed a steady increase in production over the years contributing to this growth include rising disposable incomes, expanding middle- class, improving infrastructure, and increasing urbanization. Additionally, the easy availability of financing options has made two-wheelers more accessible to a broader consumer base.
In India, motorcycles account for a sizeable percentage of the two-wheeler market, with commuter and luxury models enjoying widespread customer appeal. In recent years, scooters have also gained a lot of popularity, especially among female riders and urban commuters.
Resourceful Automobile Limited IPO – Type of Offer
Resourceful Automation Limited’s IPO involves a fresh issue of 10,24,800 shares valued at INR 11.99 crores. The company plans to use the funds for opening new showrooms in Delhi and NCR, repaying debt, addressing incremental working capital needs, and supporting general corporate purposes.
Resourceful Automobile Limited IPO Offer Size
The offer size for Resourceful Automation Limited’s IPO is INR 11.99 crores, featuring a fresh issue of 10,24,800 shares. The funds will be allocated towards opening new showrooms in Delhi and NCR, repaying debt, meeting incremental working capital requirements, and general corporate purposes.
Resourceful Automobile Limited IPO Allotment Structure
Resourceful Automobile’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 51,600 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 51,600 shares for this purpose.
How to apply for the Resourceful Automobile Limited IPO?
To apply for the Resourceful Automobile Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Resourceful Automobile Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Resourceful Automobile Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Resourceful Automobile Limited IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Resourceful Automobile Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Resourceful Automobile Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Resourceful Automobile Limited IPO:
● Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Resourceful Automobile Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Resourceful Automobile Ltd IPO Offer Registrar
The registrar for the Resourceful Automobile Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Cameo Corporate Services Limited
“Subramanian Building”, No. 1, Club House Road,
Chennai – 600 002, Tamil Nadu, India.
Telephone: +91 444 002 0700, 442 846 0390
Email: [email protected]
Website: www.cameoindia.com
Resourceful Automobile Limited IPO – FAQs
1. What is the allotment date of the Resourceful Automobile Limited IPO?
The allotment date of the Resourceful Automobile Limited IPO is August 27, 2024.
2. What is the price band of the Resourceful Automobile Limited IPO?
The price band of the issue is INR 117 per share.
3. What is the size of the Resourceful Automobile Limited IPO?
The offer size for Resourceful Automation Limited’s IPO is INR 11.99 crores, featuring a fresh issue of 10,24,800 shares. The funds will be allocated towards opening new showrooms in Delhi and NCR, repaying debt, meeting incremental working capital requirements, and general corporate purposes.
4. What is the listing date of the Resourceful Automobile Limited IPO?
The listing date of Resourceful Automobile Limited’s IPO is August 29, 2024.
