2024-11-29
48 分钟Rahul Sani is a motorbike dealer who runs two showrooms in New Delhi, India.
The inventory he has on display is unique,
as his are the only showrooms in North India that can sell and service Yamaha motorbikes exclusively.
In August this year, Rahul's modest business,
of eight employees became an overnight sensation when he decided to list shares on the Bombay Stock Exchange.
Resourceful Automobiles' SMA IPO has taken Dalal Street by storm.
Despite being a relatively small-scale offering,
it has captured significant attention from both investors and social media.
Investors flocked to get a piece of Resourceful Automobiles.
It was 419 times oversubscribed.
What that means is the company aimed to raise just around $1.5 million,
but got bids totaling around $571 million.
This vibrancy in India's stock market means great things for Rahul Sani and his motorcycle business.
We are already planning to expand two showrooms.
And in future, we want to expand more, more, more.
But for all the excitement around this company, it has revenue of just around $2 million.
and profits under $200,000 in the 11 months till March this year.
Which together led to some pretty obvious questions.
The resourceful automobile SME IPO is crazy.
Is no one asking what the terminal value of two dealership showrooms and eight employees is?