Rolex Rings IPO: GMP, date, price, other key details to know before you subscribe

Rolex Rings IPO: GMP, date, price, other key details to know before you subscribe

Auto-components maker Rolex Rings Limited’s initial public offering (IPO) will open for subscription on Wednesday i.e., July 28 and will be closed on July 30. The company has fixed its price band for the initial share sale at ₹880-900 a share. The issue comprises of a fresh issue of ₹56 crore and an offer for sale (OFS) of ₹750 crore by Rivendell PE.

As per market observers, Rolex Rings grey market premium (GMP) is at around ₹420. The grey market is an unofficial platform, wherein trading starts after the announcement of IPO price band till the listing of IPO shares.

Rolex Rings is one of the top five forging companies in India in terms of installed capacity and a manufacturer and global supplier of hot rolled forged and machined bearing rings, and automotive components.

‘‘Glaring at the performance of company, the growth seems to be missing as revenue from operations remained at ₹6163.32 million in FY 2020-21 from ₹9043 million in FY 2019,’’ said Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares.

As per RHP the company had defaulted in payment of certain loans in the past, and had approached CDR Cell for restructuring debt in FY 2013. The raw materials used by company pre-dominantly includes carbon steel, alloy steel and stainless steel, the price of which has been volatile in the past which could affect their operating margins. ‘‘At the price of ₹900, the asking PE comes at 24x. High sentiment in primary markets may emnate in listing gains but for long term it would be worthy to watch for future performance and take any decision,’’ Doshi said.

Proceeds from the fresh issue would be used towards funding long-term working capital requirements as well as general corporate purposes. Equirus Capital Private Ltd, IDBI Capital Markets & Securities Limited, JM Financial Limited have been appointed as merchant bankers for the issue. The equity shares of the company will be listed on the BSE and NSE.

‘‘For Rolex Rings, the revenues for most listed peers and the company have declined over the past four years but the company has generated better ROEs on account of better Asset Turnover. The company has a long-standing relationship with existing clients and the with newer products, it should be able to increase the share from existing customers.. Considering potential rebound in demand from user industries, we have a positive outlook on Rolex Rings IPO,’’ said Milan Desai, Lead Equity Analyst, Angel Broking.

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Two IPOs open this week. Latest GMP, dates, issue price and other details

July has been the busiest season in terms of initial public offering (IPOs) hitting the Indian markets with many companies including Zomato making strong debut on Dalal Street after receiving overwhelming investors' response for their public offering. Now, two more IPOs - Glenmark Life Sciences and Rolex Rings Limited are set to hit the markets this week. Glenmark Life’s IPO is scheduled to open on July 27 whereas that of Rolex Rings will open for bidding on July 28.

IPO details -

Glenmark Life Sciences: Glenmark Life Sciences Limited’s IPO will open for subscription on Tuesday i.e., July 27 and will be opened for bidding on July 29. The price band for the initial share sale is fixed at ₹695 to ₹720 per share. The expected date of listing on the stock exchanges is August 6.

Its IPO size has been reduced as it will now consist of a fresh issue of ₹1,060 crore and offer for sale (OFS) of up to 63 lakh shares by its promoter Glenmark Pharma.

As per market observers, Glenmark Life shares are available at a premium of ₹135 in the grey market today. The grey market is an unofficial platform, wherein trading starts after the announcement of IPO price band till the listing of IPO shares.

ICICI Direct in a note said, ‘‘GLS has a good performance execution and clean regulatory track record. The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally. The growth momentum also has a strong undercurrent of global API industry growth. We recommend Subscribe to the issue.’’

Rolex Rings: Auto-components maker Rolex Rings Limited’s IPO is expected to open for subscription on July 28 and close on July 30. The company has fixed its price band for the initial share sale at ₹880-900 a share. As per market observers, Rolex Rings grey market premium (GMP) is strong at around ₹530.

The issue comprises of a fresh issue of ₹56 crore and an offer for sale (OFS) of ₹750 crore by Rivendell PE. Currently, Rivendell holds 41% stake in Rolex Rings. Based at Rajkot in Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country.

‘‘Considering that both these companies have good positioning in their respective sectors, we believe that they both can deliver listing gains for the investors. Glenmark being a play on APIs is a good long-term candidate for the portfolio,’’ said Yash Gupta, Equity Research Associate, Angel Broking.

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Upcoming IPOs: GMP, price, other details that you should know

Upcoming IPOs: When the stock market will open tomorrow after the weekend, two initial public offering (IPOs) — Glenmark Life Sciences and Rolex Rings — will be knocking the doors of both NSE and BSE. As per the tentative dates table of these two upcoming IPOs, Glenmark Life Sciences IPO is expected to open for bidding on 27th July 2021 while Rolex Rings IPO is likely to become available for bidding from 28th July 2021. According to the market observers, Glenmark Life Sciences IPO GMP and Rolex Rings IPO GMP have already started scaling ahead of its subscription opening date.

Here we list out some important details in regard to the two upcoming IPOs:

Grey marker premium (GMP)

Gelnmark Life Sciences IPO GMP today is ₹580, which is ₹380 higher from its yesterday’s share price in the grey market. This rise in Gelnmark Life Sciences IPO grey market premium can be understood as its subscription opening date is on 27th July i.e. on Tuesday. However, it would be surprising for the IPO bidders when they would come to know that Rolex Rings IPO GMP has skyrocketed from ₹500 to ₹580, ₹80 up from its yesterday’s share pric ein the grey market.

Subscription date

Gelnmark Life Sciences IPO is going to open for subscription on 27th July 2021 and it will remain open for bidding till 29th July 2021. Rolex Rings IPO is expected to open for bidding on 28th July 2021 while it is expected to remain open for subscription till 30th July 2021.

Price band

Gelnmark Life Sciences IPO price has been fixed at ₹695 to ₹720 while the Rolex Ring management is yet to fix its public issue price. Rolex Rings IPO’s other details like share allotment date, listing date are expected to become public once the management announces its issue price. So, bidders are expected to keep an eye on the Rolex Rings promoters' activities.

However, the tentative Glenmark Life Sciences IPO allotment date is 3rd August and it is expected to get listed at NSE and BSE on 6th August 2021.

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