An Indian motorcycle dealer with two dealerships and eight employees only planned an IPO but it has been oversubscribed over 400 times, suggesting how higher the country’s market for new shares is likely to have become. Resource Auto Co., Ltd. The New Delhi based company is looking for 120 million rupees ($1.4 million) in its offer document. Costs cover its payment of debt and purchase of new showrooms. Sony Motors Corporationthe company is an authorized dealer Yamaha Motor Corporation. Stils., Pte Ltd. Requests as to whether the company was approached for comment went unanswered.
Meanwhile, the easy gut and over-the-counter drug addiction to make money in the retail market has made about more than 50% rise in the value of shires listed companies in India this year on average since listing, which is about two times. And the craze does not seem to stop as the management of the stock market and the investors regulatory bodies forewarn the users of the market expectations of the risks and try to manage the spiraling activities.
Vineet Arora, who manages NAV Capital Emerging Star Fund in Singapore, said, “Lots of investors put in money in IPOs in order to make short term profits.” Arora is also exposed to small firms undergoing initial periods. He stated that some investors were still letting themselves take excessive risks with the expectation of profiting from a sale of shares shortly how ever after the ipo.
While scooter manufacturers are making a strong debut Aola Electric Vehicle Co., Ltd, and those poised to be listed locally Hyundai Motor Company. The Indian star also attracted the attention of the organization motorcycle manufacturers, although most of its offering is much smaller. ‘In India about 2/3 of the more than 200 firms that went public this year in Indian stock markets raised less than $10mn in their IPOs.’
