Inside a tiny bike dealer in Delhi that's now toast of Indian IPOs
It isn't the largest Yamaha showroom in the country. Nor is it the fanciest. And yet, Sawhney Automobile dealerships for bikes - under Resourceful Automobile - in South-West Delhi has made epic headlines in the Indian stock exchange circles. Welcome to Dwarka in the country's capital, a peaceful residential locality that is known for its apartments, wide roads, well-planned intersections and now, also as home to two of the most-discussed bike outlets in India under the same owner.
Why? Well, Resourceful Automobile came out with a Small and Medium Enterprise Initial Public Offering (SME IPO) last week and at last check, had been subscribed well over 400 times. As per media reports, it was subscribed 10.35 times on its very first day and then a stunning 74.13 times on the second. By Monday, the last day till the IPO was available for subscription, the figure had shot up to almost 419 times.
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Bombay Stock Exchange (BSE) data revealed that 40.76 crore bids were made against only 10.24 lakh available shares. At ₹117 per share, this comes to a total asking of around ₹12 crore, a figure paltry in comparison to the ₹2,700 crore that Resourceful Automobile could potentially pick from the market.
But again, why? To find the answer to just that, team HT Auto visited both of the Sawhney Automobile showrooms under Resourceful Automobile Limited, one in Dwarka and the other in neighbouring Mahavir Enclave, some three kilometres away from here.
While several news reports previously informed that there are only eight employees across both showrooms, it was revealed that while there are just four employees at the Mahavir Enclave showroom, the Dwarka Sector 3 showroom has 41 employees. This figure, however, includes workers at the warehouse and service workshop which are also situated near the showroom.
Selling bikes, one model at a time
Even for a Tuesday afternoon, there was not much buzz inside the main Sawhney Automobile showroom, called Blue Square Showroom, located on Rajapuri Road in Dwarka's Sector 3. If the large 'Yamaha' signboard on the face was not enough indication of the size of this facility, the 19 models showcased inside were. These ranged from Yamaha R15M to the Yamaha Fascino lineup. Interestingly though, the flagship motorcycles that were recently launched - the R3 and the MT-03 - were not on display here.
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There were several more two-wheelers at the warehouse located in the basement, while the workshop a short walk away from the main showroom. An eager sales representative greeted the two-member HT Auto team almost instantly. He politely inquired about the requirements and prodded even more gently about the budget before proceeding to ask for any pre-planned model of interest.
There is nothing quite spectacular in all of this - we asked about the FZ v3 model, its engine, its mileage and for any offers and the sales representative responded with his full battalion of knowledge. Interestingly though, the Dwarka Sector 3 showroom claims to deliver the first R3 in Delhi to a Delhi-based YouTuber. The sales representative also made it a point to emphasise that this is the largest Yamaha showroom anywhere in Delhi.
Team HT Auto next decided to also check out the Sawhney Automobile dealership in Mahavir Enclave, barely 15 minutes away. Even here, we counted around three representatives inside who were all busy with customers. This time, we skipped questions on the bikes and proceeded straight to the IPO matter. “We read about you guys in the news. Has the footfall increased since the IPO?" The store manager was clueless.
Interestingly, the Mahavir Enclave showroom was in stark contrast to the one in Dwarka Sector 3. Chipped-off walls, nearly tattered ‘Yamaha’ posters and just four employees working through the operating hours. It had fewer - 13 - models on display. This seemed especially strange because the store manager here informed this is newer of the two Yamaha showrooms under Sawhney Automobiles and was started last year.
Resourceful business for Resourceful Automobile Limited
Established in 2018, Resourceful Automobile, owned by Rahul Sawhney who is the Chairman and MD, operates Sawhney Automobiles which has managed to craft an expertise in a wide array of Yamaha products - from commuter bikes to even sportsbikes. There are even Yamaha-branded accessories available. It is reported that Resourceful Automobile is looking at taking the proceeds from the IPO to not just repay existing debt but open additional showrooms across the Delhi-NCR region.
For now though, the focus appers to remain firmly on the Dwarka facility. The showroom employee here revealed that the facility serves customers from Dwarka, Palam, Uttam Nagar, Vikas Puri, Tilak Nagar and the entire west and south west Delhi. Meanwhile, the Mahavir Enclave showroom was shifted here from Palam due to falling footfall. Bang in the middle of a very congested market, it is still quite arduous to even spot it.
Besides the two showrooms, Rahul Sawhney also has a water plant in Himachal Pradesh, revealed the same employee at the Dwarka showroom.
(Additional reporting by Srinjoy Bal and Shubhodeep Chakrvarty)
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