Automotive components maker Rolex Rings is set to make its market debut with its initial public offering (IPO) soon. NS IPO It is set to open Wednesday, July 28, and will close its subscriptions on July 30. The company’s Rs 731 crore IPO includes a fresh issue of Rs 56 crore as well as sale (OFS) of approximately 7,500,000 equity shares. Rolex Rings made its debut in 2003 as a Rajkot-based company and stands as one of the top five forging entities in India. The company specializes in manufacturing hot rolled forged and machined bearing rings and automotive components. The company directs its products to passenger vehicles, two wheelers, commercial vehicles, electric vehicles, off-highway vehicles, industrial machinery, wind turbines and railways to name a few. The company has a customer base here in India as well as abroad in other countries such as France, Italy, Germany, Thailand, Czech Republic and the US.
With that said, here’s everything you need to know about the Rolex Rings IPO:
1) Public Issue Overview
The size of the IPO is around Rs 731 crore. It has a fresh issue of Rs 56 crore as well as an OFS of approximately 7,500,000 equity shares with a valuation of Rs 675 crore. The face value of the shares is Rs 10 per equity share while the price band for public issue is Rs 880 to Rs 900 per share.
2) Gray Market Premium (GMP)
According to the information received from IPO Watch, the GMP of the issue on July 26 is Rs 550. This indicates that the shares may trade at Rs 1,430 to Rs 1,450 in the gray market. This is against the established price band of Rs 880 to Rs 900 per equity share.
3) Rolex Rings IPO Important Dates
The date of opening of the public issue is July 28, 2021. After three days of subscription, the issue will close on July 30, 2021. Any anchor booking will take place on July, the day before it opens. 27.
4) Post-IPO Dates
The allotment basis will be on August 4, while the refund will be on the next day, August 5. For the lucky investors, their shares are likely to be credited to their demat accounts on August 6. The IPO stands as of August 9, however, this is yet to be confirmed.
5) Reservation
The IPO will be open to Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs) and retail investors. In terms of reservation, the issue has an allocation of 50 per cent for the QIB category, 15 per cent for the NII quota and 35 per cent for the retail segment.
6) Rolex Rings IPO Lot Size
Rolex Rings IPO has a minimum market lot size of 16 shares with a minimum price limit of Rs 14,400 as application amount. At the high end of things, the lot size is capped at 208 shares at a price of Rs 187,200 as the application amount.
7) Objective of the offer
The net proceeds from the IPO will go towards the company’s long-term working capital requirements as well as general corporate objectives.
8) Company Financial
In 2018, the company had an asset base of Rs 803 crore and revenue of Rs 792 crore as per information from IPO Watch. The company’s profits have seen a decline over the years as the revenue in 2020 stood at just Rs 675 crore with a PAT of Rs 52.94. This trend continued till 2021 as the company’s revenue is Rs 225 crore and PAT is Rs 25.31.
9) Promoter and Promoter Group
The promoters of Rolex Rings’ IPO are Rupesh Dayashankar Madeka, Jiten Dayashankar Madeka, Manesh Dayashankar Madeka, Pinakin Dayashankar Madeka, and Bhautik Dayashankar Madeka.
10) The Competitive Strength of Rolex Rings
The company is one of the leading forging companies in India with strong manufacturing capability. It also has a very diverse client base that is spread across the international arena. This diversifies its revenue base. It also has an extensive product portfolio.
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