Rolex Rings Limited It is the last day of the initial public offering (IPO) of the company. NS IPO It was opened for subscription on 28 July and has an expiration date set for 30 July. The company saw a decent amount of subscriptions from investors on the second day of the public issue. The total subscription of investors was up to a total of 9.26 times at the end of the second day at around 17:00 IST, July 29. Rolex Rings IPO As per information on Chittorgarh, the retail category was subscribed 15.89 times, non-institutional investors (NII) segment 5.85 times and qualified institutional buyers (QIBs) 0.23 times. The issue of Rs 731 crore received bids for Rs 5.26 crore as against the offer size of 56.85 lakh equity shares.
Retail investors gained in subscriptions, while QIBs were behind in subscribing to the issue. QIB had bid for 3,70,096 equity shares against its reserve share of 16.24 lakh equity shares. In terms of reservation, the share reserved for investors for the retail category was 35 per cent. The reserve share in the public issue for the NII segment was 15 per cent. The biggest allocation for QIBs was 50 per cent. The market lot size for the Rolex Rings IPO was 16 shares. The minimum lot size was 16 shares, while the minimum application amount was Rs 14,400. At a high level, the issue had a huge size of 208 shares, with an application amount of Rs 187,200.
In terms of gray market premium (GMP), the band price of Rolex Rings IPO ranged from Rs 880 to Rs 900 per share with a face value of Rs 10 per share. According to Chanakyanipothi the GMP for the public issue on the third day was Rs 550. The GMP of the issue was Rs 460 on the second day of the IPO. Keeping this in mind, it can be inferred that the issue was trading on the gray market at a premium of Rs 1,430 to Rs 1,450 per share against the established price band. of public issue.
The automotive parts manufacturing company was hoping to close the IPO with a total fund of Rs 731 crore. This is made out of a fresh issue of Rs 56 crore and Offer for Sale (OFS) of 7,500,000 shares at Rs 10 per share, which is up to Rs 675 crore. The next important dates will be in August after the end of Friday. The date of allotment is the first concern as it is scheduled on August 4. Refunds will start on the next day for unsuccessful bidders. Successful bidders can view the shares recognized from their demat accounts on 6th August. Lastly, the listing date is likely to be on August 9, though it is not yet confirmed as final.
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On the subject of the company’s financial performance, HDFC Securities in a note said, “RRL has been able to significantly improve its financial profile with an improvement in the debt-equity ratio from 1.79 times as on March 31, 2019 to 0.70 times as on March 31, 2019. 2021 which is also reflected in the Credit Rating Care BB, Outlook Stable. It has been able to achieve this through net cash flow from operating activities which is Rs.592.14 million for the financial years 2021, 2020 and 2019, Rs. 1,837.77 million, and Rs.1,938.05 million respectively. During the financial years 2021, 2020 and 2019, the company raised assets, plant and equipment and intangible assets (including capital advances) at Rs.387.29 million, Rs.160.94 million, and Rs.367.41 million respectively. Procurement and capital works are in progress. These investments have been made towards expansion of its forging and machining capacity, heat treatment facilities and investment in equipment for solar power generation.
Speaking on the IPO, Choice Equity Broking said, “If we normalize FY21 earnings (i.e. apply a tax rate of around 17 per cent), the P/E valuation sought would have been 39.4 times.” which we think is enhanced.”
Choice Broking then said, “It is seeking enterprise value (EV) / 4.3x sales, at a premium to the peer average of 3.9x. The overall outlook for the bearing ring and auto component industries remains positive.” However, despite its presence in the lucrative industry segment, high demand valuations are a matter of concern for investors.”
Simultaneously, Choice Broking has awarded a ‘Subscribe with caution’ rating to the Public Issue of Rolex Rings Limited.
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