Operating under the brand name Sawhney Automobile, the company is an authorised dealer for Yamaha Motor. Calls placed to the firm for comment were not answered.
Helped by buoyant demand from a swollen retail market, shares of companies going public in India this year have surged by an average of over 50% since debut, more than double the global average. The frenzy continues despite efforts by regulators to warn investors of risks and curb excessive moves.
“Many investors are putting money into IPOs just with the intention to make a quick buck,” said Vineet Arora, who manages the Singapore-based NAV Capital Emerging Star Fund. Arora, who has also invests in IPO-bound small firms, said some investors continue to ignore risks, hoping for gains by selling shares soon after trading debuts.
See also: Frustrating July as India markets see aggressive selldown
While the strong debut of scooter maker Ola Electric Mobility and the planned local listing of Hyundai Motor’s Indian unit have drawn attention, most offerings have been much smaller. Out of the more than 200 companies that have been listed on Indian bourses this year, some two-thirds have raised less than US$10 million ($13.05 million).
Chart: Bloomberg
