]

New Delhi: Rolex Rings IPO share listing has been done today at BSE and NSE. Rolex Rings Shares have made debut in stock market in grand manner. Rolex Rings is a forged and machine bearing rings and automotive components manufacturing company.Also Read - Karnataka School Reopening Update: Schools To Reopen from August 25 for students of THESE Classes | Details Here

Rolex Rings Share Price Check Direct Links

Rolex Rings Shares have been listed on BSE and NSE on Monday i.e August 9.

If you want to check Rolex Rings Share Price on BSE, you need to go to https://www.bseindia.com/stock-share-price/rolex-rings-ltd/rolexrings/543325/

Rolex Rings Share Price on NSE can be checked at https://www.nseindia.com/get-quotes/equity?symbol=ROLEXRINGS

Rolex Rings IPO Price, Rolex Rings IPO Details

Rolex Rings listing misses estimates; what should investors do now?

]

live bse live

nse live Volume Todays L/H More ×

Rolex Rings shares debuted at a premium of 39 percent on August 9, missing analysts' expectations.

The stock opened at Rs 1,249 on the BSE and Rs 1,250 on the National Stock Exchange, rising 39 percent over the issue price of Rs 900 per share. It rallied up to Rs 1,264.95, up 40 percent. Analysts had expected it to debut with a 45-50 percent premium.

At the time of publishing this copy, it was trading at Rs 1,165.20, up 29.47 percent on the BSE. The combined trading volume was 95.68 lakh equity shares on the BSE and NSE.

Experts advised booking partial profits and holding the remaining allotted shares for the long term considering its strong relationships with customers, improving outlook of the automobile industry and robust forging capabilities.

To Know All IPO Related News, Click Here

“We recommend allotted investors to book 50 percent of profits on listing day and holding the rest for mid and long term horizon. If non-allotted investors wish to buy on a listing day it is better to wait and watch to accumulate at a better pricing range in the near future,” Prashanth Tapse, VP Research at Mehta Equities told Moneycontrol.

Astha Jain, Research Analyst at Hem Securities, also recommended that investors who had received allotment & had put in money for listing gain perspective can book profit on listing day while those with long term horizon can book some profit & keep remaining allotment.

Also read - CarTrade Tech IPO opens today: Analysts give thumbs-up to profitable multi-channel auto platform

“The company is one of the top five forging companies in India in terms of installed capacity. It serves 60 customers across 17 countries that constitutes around 80 percent of the total market. The company has a strong & sticky clientele & is in the process of expanding capacity of its solar projects by an installed capacity of 16 MW, the proposed expansion will help in reducing company’s carbon footprint and expanding its profit margins,” she reasoned for long term holding.

With three manufacturing units in Rajkot, the company has 22 forging lines with a combined installed capacity of 1,44,750 MTPA (million tonnes per annum), machining facilities consisting of 528 spindles with a combined installed capacity of 69 million parts per annum, and other machinery including heat treatment furnaces, cold rolling machines and other infrastructure.

Its customers are leading bearing manufacturers, and also a Tier-I supplier to global auto companies.

Also read - Nuvoco Vistas Corporation IPO opens today: Should you subscribe?

It has reported strong financial performance in the last three financial years ended March 2021, with attractive return ratios driven by margins. It reduced debt by 50 percent (around Rs 247 crore) due to strong free cash flow generation during FY18-FY20.

“The company’s strong relationships with leading original equipment manufacturers (OEMs), improving outlook of automobile industry and robust forging capabilities would help in improving growth prospects of the firm in the near future. Therefore, investors can consider holding this for medium to long term,” said Likhita Chepa, Senior Research Analyst at CapitalVia Global Research.

Rolex Rings raised Rs 731 crore from investors, through its IPO that comprised a fresh issue of Rs 56 crore and the rest Rs 675 crore by selling shareholders.

The company is planning to use the proceeds from the fresh issue to fulfil their long-term working capital requirements as well as general corporate purposes.

The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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

]

Rolex Rings IPO was subscribed a massive 130 times by investors last month. (Image: REUTERS)

Shares of Rolex Rings opened to trade at Rs 1,249 per share, up 39% or Rs 349 per share from the IPO price of Rs 900 per share. The IPO of the automotive components manufacturer was subscribed a massive 130 times by investors last month. Rolex Rings’ Rs 731 crore IPO was a mix of fresh issue of equity shares worth Rs 56 crore while the remaining Rs 675 crore was an offer for sale (OFS) by existing shareholders. On listing the company had a market capitalization of Rs 3,401 crore.

Check Live Price: Rolex Rings

Rolex Rings IPO was subscribed 143.58 times by Qualified Institutional Buyers (QIB) while Non-Institutional Investors (NII) had bid for the issue a whopping 360 times. The retail investor quota was subscribed 24.49 times, translating to an overall subscription of 130.44 times. Post issue, the promoter shareholding has been trimmed to 57.64% now while the Public shareholding has risen to 42.36%.

The company is one of the top five forging companies in India, according to ICICI Direct. The client base of Rolex Rings consists of leading global bearing manufacturers such as SKF, Timken, Schaeffler, NEI & NRB Bearings. Rolex Rings has reported profits for the last four financial years. In the previous fiscal year, the company reported a net profit of Rs 87 crore, up from Rs 53 crore in the financial year 2019-20. The concern surrounding the company stems from its default on loan payment in 2013. Post restructuring of the same debt, a significant portion of the promoter shareholding has been pledged and will remain so till at least March next year.

Analysts at ICICI Direct believe that the Rolex Rings IPO was priced at P/E of 28.2x (post issue) FY21. “A sticky clientele, increasing share of business amongst existing customers, improving operational efficiencies led by better utilisation and exit from CDR remain key catalyst for Rolex Rings,” the brokerage firm had said while pinning a ‘subscribe’ rating on the IPO.

Meanwhile, Marwardi Financial Services had a ‘Subscribe with caution’ rating on the issue. “We assign “Subscribe (With Caution)” rating to this IPO as company is one of the leading forging manufacturers with geographically diversified revenue base and is available at reasonable valuation as compared to its peers. However, the client concentration risk and CDR debt restructuring in the past keeps us cautious at the same time from a longer-term perspective,” they said.