NCR-based Resourceful Automobile Limited will be listed on the NSE SME on Thursday, August 29. Now, this might not seem like a development out of the ordinary, but there is something different about this listing.
‘Will List Anything With Cashflow’
The Yamaha bike dealership currently only wields a single showroom, and it is located in the NCR region. Given its scale, the company will be listed on the Bombay Stock Exchange index for Small and Medium Scale Enterprises.
The company’s scale and size, and the fact that it is slated to be listed on the oldest exchange in Asia, have garnered some attention.
An X user took to the social media platform to underscore the general sentiment of amazement shared by some.
India will list anything with cash flow these days.
Case in point: a single Yamaha dealership in NCR going public on SME Exchange
Is this a failure of banks, a low regulatory bar, or just opportunism?
Might as well list the GST department . Will get 100x on DCF method
— Arun Venkatachalam (@arunvenk) August 25, 2024
The user who claims to be dealing in micro-merchant loans said, “India will list anything with cash flow these days.”
He cited the case of the aforementioned bike-dealer, and added, “Case in point: a single Yamaha dealership in NCR going public on SME Exchange.”
He further raised questions regarding the need for such a development, putting the onus on the banking system, which perhaps might be too rigid for small businesses, that they are coerced by circumstances to float an IPO.
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Failure Of Banks?
The user further added, “Is this a failure of banks, a low regulatory bar, or just opportunism? Might as well list the GST department . Will get 100x on DCF method.”
Some users, while responding to the post, had similar thoughts to share. On user said, “Curious to know what your thoughts are on the value a business derives from being listed?”
Another user made a claim of another small entity getting listed. The user added, “The other day, 24-bed hospital in Bharuch city of Gujarat got listed”. Another netizen underscored the apparent inability of the banking system and claimed, “No one wants to sit with the banks. Hope this continues and the banks bring down their interest rates. Banks are hoarding a lot of money.”
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Resourceful Automobile IPO
The Resourceful Automobile IPO opened for subscriptions on August 22, 2024 and close today, August 26, 2024. The allotment for the Resourceful Automobile IPO is expected to be completed on Tuesday, August 27, 2024. And as mentioned before, it is expected to be listed on August 29. The Resourceful Automobile IPO is a fixed-price issuance of Rs 11.99 crore. The offering is totally new, totalling 10.25 lakh shares.
