Resourceful Automobile share price hit the highest permissible trading limit in August 29 trade after a flat listing on the BSE SME platform.
Resourceful Automobile stock hit the upper circuit limit to quote at Rs 122.85 per share on the BSE. It has a upper price band of 5 percent on the BSE.
The Rs 12-crore initial public offering of the Delhi-based company, with just two outlets and a workforce of eight employees, made headlines by receiving bids worth close to Rs 4,800 crore. Investors in Resourceful Automobile mad a profit of Rs 7,000 per lot on investment of Rs 1.4 lakh as the lot size is 1,200.
A total of 5.16 lakh shares of Resourceful Automobile changed hands today, generating a total turnover of Rs 6.05 crore. The company's market cap has jumped to Rs 32.63 crore, till the time trading was halted due to upper circuit.
Founded in 2018, the company's maiden share sale saw an overwhelming response, with bids for 40.76 crore shares as against the 9.76 lakh shares on offer translating into a subscription of 419 times on the third day of the bidding process.
Amid this frenzy, markets regulator in its advisory on August 28 raised concerns about the risks associated with investments in small and medium-sized enterprises (SMEs).
SEBI has advised investors to be vary of the companies painting an unrealistic positive picture, and also not fall for social media tips or rumours.
The regulator noted that in the recent past it has passed orders against such entities. It further highlighted the modus-operandi of these entities urging investors to be careful and watchful of these patterns.
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