Rolex Rings, the automotive components manufacturer is set to make its debut in the market with its initial public offering (IPO) soon. The IPO is set to open on July 28, Wednesday and it will close its subscription on July 30. The company’s IPO of Rs 731 crore comprises a fresh issue worth Rs 56 crore as well as an offer for sale (OFS) of around 7,500,000 equity shares. Rolex Rings found its start 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 & machine bearing rings and automotive components. The company directs it products to passenger vehicles, 2-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 countries such as France, Italy, Germany, Thailand, Czech Republic and the US amongst others.
With that said, here is everything you need to know about 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 stands at Rs 10 per equity share while the price band for the public issue is at Rs 880 to Rs 900 per share.
2) The Grey Market Premium (GMP)
On July 26, the GMP for the issue stands at Rs 550 as per information from IPO watch. This indicates that the shares will likely trade at Rs 1,430 to Rs 1,450 on the grey market. This is against the established price band of Rs 880 to Rs 900 per equity share.
3) Important Dates of Rolex Rings IPO
The opening date of the public issue is July 28, 2021. After a three-day subscription, the issue will come to a close on July 30, 2021. Any anchor bookings that occur will likely take place a day prior to opening, on July 27.
4) Post-IPO Dates
The Basis of Allotment will likely be on August 4, while the refunds will be on the following day, August 5. For the lucky investors, their shares will be most likely credited to their Demat accounts on August 6. The tentative listing day for the IPO stands as August 9, however, this is yet to be confirmed.
5) Reservations
The IPO will be open to Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs) and Retail Investors. In terms of reservations, the issue has an allocation of 50 per cent for the QIB category, for the NII quota it has a 15 per cent reservation and for the Retail segment, the reservation is 35 per cent.
6) Rolex Rings IPO Lot Size
The Rolex Rings IPO has a minimum market lot size of 16 shares with a minimum price cap of Rs 14,400 as the application amount. On the higher end of things, the lot size stands at a cap of 208 shares at a price of Rs 187,200 as the application amount.
7) Object of the Offer
The net proceeds from the IPO will go towards the long-term working capital requirements of the company as well as general corporate purposes.
8) Company Financials
In 2018, the company had an Asset base of Rs 803 crore and a revenue of Rs 792 crore as per information from IPO watch. The company’s profits have seen a decline over the years as in 2020 the revenue was just Rs 675 crore with a PAT of Rs 52.94. This trend continued till 2021 as the revenue of the company stands at Rs 225 crore and a PAT of Rs 25.31.
9) Promoters 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) Competitive Strengths of Rolex Rings
The company stands as one of the leading forging companies in India with a strong manufacturing capability. It also has a very diverse customer base that extends into international territory. This makes its revenue base as diverse. It also has a comprehensive product portfolio.
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