<ul><li><keyword id="22929981" type="General" weightage="20" keywordseo="Resourceful-Automobile" source="Orion">Resourceful Automobile</keyword>, a <keyword id="22931365" type="General" weightage="20" keywordseo="Yamaha-dealership" source="keywords">Yamaha dealership</keyword> with two showrooms has received an amazing response for its SME IPO.</li><li>The company’s IPO has been subscribed over 400 times, receiving bids for over ₹4,700 crore.</li><li>Here’s everything you need to know about the <keyword id="22929982" type="General" weightage="20" keywordseo="Resourceful-Automobile-ipo" source="Orion">Resourceful Automobile IPO</keyword>.</li></ul>In a surprising turn of events, Resourceful Automobile, a company looking to raise funds through an SME IPO (small and medium enterprises) has received an amazing response, shocking everyone.<br /><br />The company, which operates two Yamaha bike showrooms in New Delhi was looking to raise ₹11.99 crore through an initial public offering (IPO). It ended up receiving applications worth over ₹4,760 crore as the IPO has been subscribed over 418 times.<br /><br />      <div type="Article" hostid="261" msid="112798622" title="Upcoming IPOs to look out for this week – Premier Energies, ECO Mobility and more" mstype="2" mssubtype="0"></div><br />The company received bids for 40.76 crore shares against the offered 10.25 lakh shares. The company had set the share price at ₹117 per share with a lot size of 1,200 shares per application.<br /><br />The IPO is set to be listed on the BSE SME platform on August 29.<br /><br /><h2>Just eight employees</h2>Resourceful Automobile has just eight employees, three in legal and finance, two in sales, two in operations and one in human resources.<br /><br />A company that operates just two showrooms receiving such a response has resulted in mixed responses from social media, while some are talking about the expected returns, there have been calls for stricter regulation to protect the interests of retail investors.<br /><br />The company will use the funds raised to open new showrooms, repay debt and meet the working capital requirements.<br /><br /><h2>Analysts had asked to avoid the IPO</h2>Several analysts had recommended users not apply for the IPO as the company operates in a highly competitive segment of two-wheeler dealerships and has been inconsistent in its financial performance.<br /><br />For the year ending February 2024, the company reported a revenue of ₹17.23 crore with a profit of ₹1.52 crore. In March 2023, the company reported a revenue of 19.38 crore and a profit of just 41.5 lakh.<br /><br /><h2>Why did the IPO receive such a response?</h2>While its financials were not strong, one of the reasons for the robust subscription was the high expected return.<br /><br />The company is currently enjoying a grey market premium of ₹85 per share, which is around 73% of its share price.<br /><br /><h2>NSE tightens the norms for SME IPOs</h2>The NSE had already tightened the norms for SME IPOs earlier this month. Starting from September 2024, only companies with positive free cash flow to equity for at least two of the last three financial years will be allowed to list in the SME segment.<br /><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/tech/news/telegram-comes-under-the-scanner-in-india-for-extortion-and-gambling-will-it-be-banned-in-india/articleshow/112807370.cms">Telegram comes under the scanner in India for extortion and gambling – will it be banned in India?</a><br /><br /><a href="https://www.businessinsider.in/stock-market/webstories/premier-energies-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112803763.cms">Premier Energies IPO – Price band to risk factors, all you need to know</a><br /><br /></strong><a href="https://www.businessinsider.in/tech/news/govt-warns-about-fake-sms-warning-users-to-update-their-pan-what-it-is-and-how-to-stay-safe/articleshow/112795812.cms"><strong>Govt warns about fake SMS asking users to update their PAN – what it is and how to stay safe</strong></a><br />

Delhi firm with just 8 employees seeks ₹12 crore via IPO, gets ₹4,700 crore worth of investor applications!

<ul><li>Kaushik Banerjee, Co-founder and CEO, MeVero Inc writes why brands should engage with its current customers and prospective one, to help them tide over this crisis.</li><li>He further shares how every situation, however bad, presents an opportunity for brands. and their marketing strategy now depends on the consumer problem the product is trying to solve.</li></ul>This time of the year is always a time of festivity in many parts of the world. What that means is a lot of shopping for discretionary items. Total spending in the USA last year during this time is estimated at $18 billion+. The top purchases categories included food, clothing, gifts and premium handmade products. With increasing number of people moving to online shopping, almost all digital companies – be it a start-up or a relatively established player, plan for a surge in marketing spends around this time of the year. Online shoppers have increasingly spent more than those going to stores. As a result, mobile payments have seen around a 10% rise during these times, year on year. Be it digital payments, <keyword id="124571" type="ORGANIZATION" weightage="20" keywordseo="digital-media">digital media</keyword>, e-commerce or logistics, every start-up in these domains plan for an upswing in consumer spending propensity.<br /><br />But the times are different this year. The Covid-19 pandemic has caused widespread disruption of normal life across the world. A lot of industries have come to a halt, like retail, automobiles, travel and tourism, F&amp;B etc. People are also postponing their discretionary spends in view of the uncertain economic outlook. This has resulted in contraction of marketing spend for start-ups in general. All major campaigns have been postponed. This is evident from the fact that the advertising on Google and Facebook has become less expensive, meaning that there are fewer advertisers. The CPMs for Facebook, Instagram have fallen by average 15% in March 2020 compared to February 2020.<br /><br />The marketing strategy now depends on the consumer problem the product is trying to solve. If the product is in digital healthcare, digital learning, media, hyperlocal delivery, or anything that can help people sustain and engage gainfully while staying at home due to lockdown, it is the right time to engage with the customer, both current and prospective, through meaningful communication. Social media can be used effectively to promote health and hygiene while carefully weaving the brand story into it. If the product falls under the discretionary category, or caters to it, it is best to postpone any marketing activity. Rather resources should be used to improve the product.<br /><br />Every situation, however bad, presents an opportunity for brands. People now need to spend time productively, maintain health &amp; hygiene, take care of family, manage finances wisely and work from home. Brands should engage with its current customers and prospective one, through low cost media to help them tide over this crisis.<br /><br />In this Covid – 19 outbreak digital platforms are witnessing a surge in subscription and user base as consumers are utilising their more time on such platforms during the lockdown period. As people spend more time indoors and in remote working, these digital players have seen an unprecedented growth across the world. Today’s hyper connected world makes it easier for digital companies across the globe to acquire users by advertising and marketing themselves on the digital platform solely, without much of a mass media outreach. Social media, Google Adwords, Youtube etc. offer a huge opportunity for digital players to reach a global audience and acquire users in this period of Covid-19. Therefore, it is no wonder that you see a slew of digital companies reaching out to new users across the world in a push for global footprint. In a matter of a few weeks they increased their user base to over hundreds of million users globally, simply by leveraging the power of <keyword id="618493" type="CITY" weightage="20" keywordseo="digital-marketing">Digital marketing</keyword>. And with a fewer number of advertisers now hawking their products, the cost of acquisition has also dropped dramatically for most digital companies. So it is becoming cheaper and faster for digital-only players to acquire global users and ramp up their offering.<br /><br />The only hitch that remains are two fold- Government regulations and Payment systems. To go global, most digital companies have to take cognisance of local Government laws and this might prove cumbersome to a lot of players. The other problem is to enable payments by users on a digital platform to suit local behaviours. For instance, in developing countries, Debit/Credit Card payments may not work. You will need to look at other innovative payment mechanisms to cater to users in these countries. So, you will see a tremendous growth in FinTech players who offer the digital companies the flexibility to accept payments from innovative methods like Wallets, Mobile payments, Voucher systems and prepaid tokens. <br />

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Delhi firm with just 8 employees seeks ₹12 crore via IPO, gets ₹4,700 crore worth of investor applications!

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