A Delhi-based resourceful automobile company with just two outlets and eight employees has taken the market by storm with its recent IPO. Bids worth a staggering Rs 4,800 crore were filed for the Rs 12 crore IPO, showcasing the strong investor interest in this lesser-known company. The IPO was oversubscribed 419 times, reflecting the confidence investors have in the potential of this company.
Established in 2018, the company operates under the brand name Sahani Automobile and holds a dealership with Yamaha for sales and servicing of motorcycles and scooters. Despite its modest size with only 8 employees across two showrooms, the company has managed to capture the attention of both institutional and retail investors.
During the IPO subscription period from August 22 to 26, the company received 40.76 crore bids, with each share priced at Rs 117. Non-institutional investors bid a remarkable 315.61 times, while retail investors showed even greater interest at 496.22 times.
The success of this IPO has paved the way for the company to be listed on the BSE and SME platform on August 29. The funds raised through the IPO will be utilized for expanding its showroom network, meeting borrowing needs, and covering operating expenses, signaling a new chapter of growth and expansion for Sahani Automobile.
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