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Rolex Rings IPO subscription, allotment and important dates updates: Rolex Rings IPO (Initial Public Offering), which kicked off on Wednesday, July 28, saw massive subscription on the last day of the issue.

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The IPO was subscribed whooping 87.06 times as bids were made for a total of 49,49,99,536 shares as against available 56,85,556 shares for the offer, showed consolidated bid details at National Stock Exchange (NSE). Non-Institutional Investors (NIIs) subscribed the issue maximum 297.83 times by bidding for 36,28,52,480 shares against allotted quota of 12,18,334 shares.Qualified Institutional Buyers (QIBs) subscribed the issue 45.95 times, while Retail Individual Investors (RIIs) applied for IPO 20.23 times.

Earlier, the IPO was subscribed 9.26 times on Thursday as against reserved quota of 56,85,556 shares, bids were received for 5,26,70,832 shares on July 29. Retail Individual Investors (RIIs) led the bidding as RIIs subscribed the issue 15.89 times, followed by Non-Institutional Investors (5.85 times). Qualified Institutional Buyers (QIBs) were yet to subscribed the issue fully.

Rolex Rings IPO important dates

Rolex Rings IPO allotment of shares begin: August 4

Rolex Rings IPO Initiation of refunds: August 5

Rolex Rings IPO allotment date: August 6

Rolex Rings IPO listing date: August 9

*Note these are key tentative dates as per brokerage UPstox.

Investors, who had put their money in the offering of Auto components maker, should know that they can check status of IPO allotment on BSE and through Link Intime India Pvt Ltd, the registrar of the IPO. Direct links for BSE and Link Intime India Pvt Ltd, the registrar for the IPO are bseindia.com/investors/appli_check.aspx and https://linkintime.co.in/MIPO/Ipoallotment.html, respectively.

Rolex Rings IPO allotment status on BSE

Step 1: Visit the link: bseindia.com/investors/appli_check.aspx on BSE official website.

Step 2: In the dropdown menu select ‘Equity’ for issue type

Step 3: Now, select the name of the IPO, which is ‘Rolex Rings Limited’ in this case

Step 4: Here, you will be asked to verify application number & PAN number

Step 5: Hit search button and you are good to go. You can see your IPO allotment on the screen

Rolex Rings IPO allotment on Link Intime step-by-step guide

Step1: Visit Link Intime India Private Limited IPO allotment link: https://linkintime.co.in/MIPO/Ipoallotment.html

Step 2: Again, select IPO Name- ‘Rolex Rings Limited’

Step 3: Here, fill in details such as PAN number, application number or DP ID

Step 4: Now, click on ‘Search’ Button. You can now see your Rolex Rings IPO Allotment on the screen.

Rolex Rings IPO: What GMP signaling on last date of subscription

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Rolex Rings IPO: ₹731 crore public issue of Rolex Rings got subscribed 9.26 times by first two days of bidding and there is still one full day left for bidders to apply for the initial public offer. Keeping an eye on the overwhelming response from the bidders, grey market is also giving positive response to the Rolex Rings shares. According to market observers, Rolex Rings IPO GMP today is ₹555, which is ₹55 up from its yesterday’s grey market share price.

The market observers said that Rolex Rings IPO grey market price has been rising since its subscription got opened on 28th July 2021. They said that in the last three days, Rolex Rings IPO grey market premium has jumped from ₹450 levels to ₹555 that means market is expecting listing gains from the IPO to the tune of near 50 to 60 per cent. They went on to add that today is the last date of bidding for Rolex Rings IPO and those who were in wait and watch, may come forward to bid for the IPO as the stock has remained strong in the grey market on first two days of bidding.

What rise in Rolex Rings IPO GMP means

As per the market observers, Rolex Rings IPO grey market premium today is ₹555, which is ₹55 higher from its share price in the grey market on Thursday. They said that in the last three days, Rolex Rings IPO GMP has been rising that means market is bullish about the public issue. They said that ₹555 GMP of Rolex Rings IPO simply means market is expecting Rolex Rings IPO listing at ₹1455 ( ₹900 + ₹555) — means expected listing premium in the grey market for the IPO is around 60 per cent.

So, those bidders who look at the grey market premium before going into the financials of the company may get attracted by this Rolex Rings GMP. Hence, surprising response from the bidders is expected as subscription is open for today only, said market observers.

Speaking on the financials in regard to Rolex rings IPO; Abhay Doshi, Founder at UnlistedArena.com said, “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.

At the price of ₹900 the asking PE comes at the multiple of 24. High sentiment in primary markets may emanate in listing gains but for long term it would be worthy to watch for future performance and take any decision.”

Standing in sync with Abhay Doshi’s views; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance said, “We assign a subscribe (With Caution) rating to this IPO as the company is one of the leading forging manufacturers with a geographically diversified revenue base and is available at reasonable valuation as compared to its peers.”

Rolex Rings IPO details

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Rolex Rings IPO: Grey Market Premium Rises on Last Day of Subscription. Should you Book?

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Rolex Rings Limited is on the final day of the company’s initial public offering (IPO). The IPO opened for subscription on July 28 and had set its close date for July 30. The company saw a good amount of subscriptions from the investors on Day 2 of the public issue. The overall subscription from investors totalled up to 9.26 times at the end of the second day which was approximately at 17:00 IST, July 29. The Rolex Rings IPO was subscribed 15.89 times in the retail category, 5.85 times in the Non-Institutional Investors (NIIs) segment and 0 .23 times by the Qualified Institutional Buyers (QIBs), according to information on Chittorgarh. The Rs 731 crore issue received bids for 5.26 crore against an offering size of 56.85 lakh equity shares.

The retail investors took the lead in subscriptions, while the QIBs were behind in terms of the times subscribed to the issue. The QIBs had put in bids for 3,70,096 equity shares against their reserved portion of 16.24 lakh equity shares. Speaking of reservations, the reserved portion for the investors stood at 35 per cent for the Retail category. For the NII segment, the portion reserved in the public issue was 15 per cent. The QIBs had the largest allotment at 50 per cent. The market lot size for the Rolex Rings IPO was 16 shares. The minimum lot size stood at 16 shares, while the minimum application amount was Rs 14,400. On the higher end, the issue had a lot size of 208 shares with an application amount cut-off of Rs 187,200.

Coming to the Grey Market Premium (GMP), the Rolex Rings IPO had a band price of Rs 880 to Rs 900 per share, with a face value of Rs 10 per share. The GMP on day 3 for the public issue stood at Rs 550 according to Chanakyanipothi. The GMP for the issue on day 2 of the IPO was Rs 460. With this in mind, it can be extrapolated that the issue was trading at a premium of Rs 1,430 to Rs 1,450 per share on the grey market, against the established price band of the public issue.

The automotive parts manufacturing company was hoping to close the IPO with a total of Rs 731 crore in funds. This is made up of a Fresh Issue worth Rs 56 crore and an Offer for Sale (OFS) of 7,500,000 shares at Rs 10 per share, which aggregated up to Rs 675 crore. After Friday’s close, the next important dates will be in August. The Allotment date is the first concern as it is set to be on August 4. The following day is set to be the initiation of the refunds for the unsuccessful bidders. On August 6 is when the successful bidders might see the shares accredited to their Demat accounts. Finally, the listing date is likely to be on August 9, though this is yet to be confirmed as the final.

Should You Subscribe?

On the subject of the company’s financial performance, HDFC Securities said in a note, “RRL has been able to significantly improve its financial profile with debt-equity ratio improving from 1.79 times as at March 31, 2019 to 0.70 times as of March 31, 2021 which is also reflected in the credit rating CARE BB,Outlook Stable. It has been able to achieve this through net cash flow from operating activities which for Fiscal 2021, 2020, and 2019 were Rs. 592.14 million, Rs. 1,837.77 million, and Rs. 1,938.05 million respectively. During Fiscal 2021, 2020, and 2019, the Company has spent Rs. 387.29 million, Rs. 160.94 million, and Rs. 367.41 million respectively towards purchase of property, plant and equipment and intangible assets (including capital advances) and capital work in progress. These investments have been made towards expanding its forging and machining capacity, heat treatment facilities, and investments into equipment for generation of solar energy.”

Speaking on the IPO, Choice Equity Broking said, “If we normalize the FY21 earnings (i.e. apply a tax rate of around 17 per cent), the demanded P/E valuation comes out to be 39.4x, which we feel is stretched,"

Choice Broking then added, “It is demanding enterprise value (EV)/Sales of 4.3x, which is at premium to the peer average of 3.9x. The overall outlook for bearing rings and auto components industries remains positive. However, despite its presence in the lucrative industrials segment, the higher demanded valuation is a concern for investors."

With that, Choice Broking assigned a ‘subscribe with caution’ rating for the public issue of Rolex Rings Limited.

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