Rolex Rings Rs 731-crore IPO opens July 28; check price band, lot size, allotment date, listing date

Automotive components manufacturer Rolex Rings public issue will close for subscription on Friday, 30 July 2021

Rolex Rings Rs 731-crore IPO will open for subscription on Wednesday, 28 July 2021, at a price of Rs 880-900 per share. Automotive components manufacturer Rolex Rings public issue will close for subscription on Friday, 30 July 2021. The issue will comprise a fresh issue of Rs 56 crore and an offer-for-sale (OFS) of up to Rs 75 lakh equity shares by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC). Equirus Capital Private Limited, IDBI Capital Markets & Securities Limited, and JM Financial Limited are the book running lead managers to the issue. Link Intime India Pvt Ltd is the registrar to the issue.

Up to 50 per cent of the offer will be reserved for Qualified Institutional Buyers (QIBs), not less than 35 per cent for retail investors and the remaining 15 per cent for Non-Institutional Investors (NIIs). Investors can bid for a minimum of 16 equity shares and in multiples of thereof. The promoters of the company are Rupesh Dayashankar Madeka, Jiten Dayashankar Madeka, Manesh Dayashankar Madeka, Pinakin Dayashankar Madeka and Bhautik Dayashankar Madeka. This would be the 29th IPO in the calendar year 2021.

The basis of allotment of IPO shares with the designated stock exchange will take place on 4 August. The initiation of refunds or unblocking of funds from ASBA accounts is likely to happen on 5 August 2021. While the equity shares will be credited to depository accounts on 6 August 2021. Rolex Rings will make its stock market debut on 9 August 2021, according to RHP

Upon successful listing, Rolex Rings will join the likes of Bharat Forge, Ramkrishna Forgings, and MM Forgings. The weighted average return on net worth for the last three fiscals is 23.34 per cent. While the industry peers group P/E ratio stood at 77.52x. The has planned to utilise the net proceeds from the fresh issue towards funding long-term working capital requirements as well as general corporate purposes. In addition, the auto component maker expects to receive the benefits of listing the equity shares on the stock exchanges, enhancement of its brand name among existing and potential customers and the creation of a public market for its equity shares in India.

The price/earnings ratio based on diluted EPS on a restated consolidated basis for fiscal 2021 at the upper end of the price band is as high as 25.03. Based in Rajkot, Gujarat, Rolex Rings is among the manufacturers of forged and machined components in the country. For the fiscal ended March 31, 2021, Rolex Rings reported a profit of Rs 86.95 crore as compared to Rs 52.94 crore in the preceding fiscal. Its revenues from operations stood at Rs 616.36 crore in 2020-21 as against Rs 666 crore in the preceding financial year.