This substantial oversubscription has also driven up the grey market premium to an estimated 73%, leading to concerns about speculative trading. Some market observers, like Mr. X, have warned against investing in the IPO due to the company’s modest scale and the perceived inflated grey market premium. Similarly, Viral Nagda highlighted the disconnect between the company’s financial struggles and the overwhelming investor interest, suggesting that the enthusiasm may not be grounded in the company’s fundamentals.
As Resourceful Automobile prepares to list on the BSE SME platform on August 29, with allotment details set to be released on August 27, the market remains divided on whether this surge in interest reflects genuine investor confidence or is merely a speculative bubble.
Source – (Business Today)