Rolex Rings Limited It opened with its initial public offering (IPO) on 28 July. Thursday is the second day of the IPO. The first day’s activity was good as the public issue witnessed good participation from investors, especially the retail segment. in totality, Rolex Rings IPO As per information about Chittorgarh, it was subscribed 3.84 times till the end of the trading day on 28th July at around 17:00 IST. Reports also suggest that for a breakup IPO The retail category was earmarked as under subscription of 7.11 times from investors, while non-institutional investors (NIIs) subscribed 1.34 times in the same time frame. Qualified Institutional Buyers (QIBs) bid for 3,312 equity shares against a reserve share of 16.24 lakh equity shares.
Talking about the reserve share, the investor’s share was divided as follows – there was a reservation of 50 percent in the QIB investor’s share. The NII category had 15 per cent reservation, and the retail segment enjoyed 35 per cent allocation for the issue. Simultaneously, wide birth was given to retail investors applying up to 13 lots at the upper end of the lot size. The upper end of the lot for the issue was Rs 187,200 as minimum application amount on 208 shares. At the lower end of the spectrum, the lot size was of 16 shares, with a minimum application amount of Rs 14,400.
The price band for Rolex Rings IPO is Rs 880 to Rs 900 per equity share. Considering Thursday’s gray market premium (GMP) of Rs 460, it shows that the issue is trading at a premium of Rs 1,340 to Rs 1,360 per share in the gray market.
The automotive parts maker is hoping to wrestle funds worth Rs 731 crore through its issue. This includes a fresh issue of up to Rs 56 crore and an offer for sale (OFS) of Rs 675 crore with 7,500,000 equity shares. The face value of this public issue is Rs 10 per equity share.
The IPO of Rolex Rings is set to close this Friday, July 30. After that, the leg work will start in August with the basis of allotment on the chopping block. The allotment basis is going to be done on August 4, while the refund will be started on August 5. For the successful investor, their shares will be recognized in their demat accounts on 6th August. The last listing date that the company will take it public is set for August 9, 2021. The current promoters of this IPO are Rupesh Dayashankar Medka, Jiten Dayashankar Medka, Manesh Dayashankar Medka, Pinakin Dayashankar Medka, and Bhautik Dayashankar Medka as per their draft red herring prospectus.
The company was incorporated in 2003 and stands as one of the forging leaders in India. Rolex Rings specialize in manufacturing hot rolled forged and machine bearing rings and automotive components that are used in all segments such as passenger vehicles, 2-wheelers, commercial vehicles, electric vehicles, off-highway vehicles, industrial machinery, wind turbines and railways. Some. The company offers a wide range of products such as automotive parts, hot forged and machined alloy steel bearing rings weighing from 0.01 kg to 163+ kg. It provides these to various industries such as automotive, industrial infrastructure, railways and renewable energy. The company has presence in 17 different countries including France, Italy, Germany, Thailand, Czech Republic, USA and India.
Should you subscribe?
Speaking on the outlook for the company, ICICI Direct Research said in a note, “RRL serves 60 customers in 17 countries and is one of the leading suppliers to leading bearing manufacturers. The company’s wide range of products
Portfolio catering for Auto, Industrial, Infra and Renewable segments and longstanding customer relationship lend credibility to the quality and consistency of RRL’s products. As the industrial segment picks up on recovery in the auto sector along with increased capital expenditure by the public and private sector, RRL should see strong traction from bearing manufacturers. The effective customers of RRL are ~80% of the total market. Hence, it ensures strong traction for RRL when the tide turns.”
Milan Desai, Lead Equity Analyst, Angel Broking said, “As far as Rolex Rings Ltd. is concerned, most of the listed peers and the company’s revenues have declined in the last four years, but the company has shown a better ROE due to better asset turnover. has generated. The company has a long standing relationship with existing customers and with new products, it should be able to increase share from existing customers. Based on the price band of Rs 880-900, the company is seeking a PE of ~39x without considering tax credit of Rs 25 crore, which is justified considering its strong return ratio. ~55% of revenue comes from outside India and given the potential rebound in demand from user industries, we also have a positive outlook on Rolex Rings Limited’s IPO.”
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