The excitement that surrounded Resourceful Automobile’s initial public offering (IPO) from small and medium enterprises (SMEs) shows that the primary market is currently experiencing a period of excessive optimism. Resourceful Automobile, which operates as a motorcycle dealer with two showrooms and a staff of eight, aimed to gather a relatively small sum of Rs 12 crore. However, it ended up with bids totaling Rs 4,800 crore. The majority of these bidders were average investors, retail customers, and not institutional investors. Furthermore, this event is not unique; there have been several other SME IPOs in the recent past that have also faced high demand. On average, for every IPO to date, over 219,000 individuals have expressed interest in investing.
