Rolex Rings shares list with gains; stock debuts at 39% premium to IPO price

Rolex Rings IPO was subscribed an enormous 130 occasions by buyers final month.
(Picture: REUTERS)

Shares of Rolex Rings opened to commerce at Rs 1,249 per share, up 39% or Rs 349 per share from the IPO worth of Rs 900 per share. The IPO of the automotive elements producer was subscribed an enormous 130 occasions by buyers final month. Rolex Rings’ Rs 731 crore IPO was a mixture of contemporary situation of fairness shares value Rs 56 crore whereas the remaining Rs 675 crore was a suggestion on the market (OFS) by present shareholders. On itemizing the corporate had a market capitalization of Rs 3,401 crore.

Verify Dwell Value: Rolex Rings

Rolex Rings IPO was subscribed 143.58 occasions by Certified Institutional Patrons (QIB) whereas Non-Institutional Traders (NII) had bid for the difficulty a whopping 360 occasions. The retail investor quota was subscribed 24.49 occasions, translating to an total subscription of 130.44 occasions. Submit situation, the promoter shareholding has been trimmed to 57.64% now whereas the Public shareholding has risen to 42.36%. 

The corporate is likely one of the prime 5 forging firms in India, in line with ICICI Direct. The shopper base of Rolex Rings consists of main world bearing producers corresponding to SKF, Timken, Schaeffler, NEI & NRB Bearings. Rolex Rings has reported earnings for the final 4 monetary years. Within the earlier fiscal yr, the corporate reported a internet revenue of Rs 87 crore, up from Rs 53 crore within the monetary yr 2019-20. The priority surrounding the corporate stems from its default on mortgage cost in 2013. Submit restructuring of the identical debt, a good portion of the promoter shareholding has been pledged and can stay so until at the least March subsequent yr.

Analysts at ICICI Direct consider that the Rolex Rings IPO was priced at P/E of 28.2x (publish situation) FY21. “A sticky clientele, rising share of enterprise amongst present clients, bettering operational efficiencies led by higher utilisation and exit from CDR stay key catalyst for Rolex Rings,” the brokerage agency had stated whereas pinning a ‘subscribe’ ranking on the IPO. 

In the meantime, Marwardi Monetary Providers had a ‘Subscribe with warning’ ranking on the difficulty. “We assign “Subscribe (With Warning)” ranking to this IPO as firm is likely one of the main forging producers with geographically diversified income base and is on the market at cheap valuation as in comparison with its friends. Nevertheless, the shopper focus threat and CDR debt restructuring previously retains us cautious on the identical time from a longer-term perspective,” they stated.