Rolex Rings shares: What GMP is signaling ahead of listing
Rolex Rings shares: After the finalisation of share allotment, all eyes are now set on Rolex Rings IPO listing date i.e. 9th August 2021. However, those who got the auto component company’s shares during allotment process, they are having a close eye on the grey market as well. In fact, those who were unlucky even after applying for the public issue; they would also keep an eye on the Rolex Rings IPO listing as some of them may look at buying the counter from open market. According to market observers, Rolex Rings IPO GMP today is ₹480, ₹30 up from its yesterday’s grey market price. Observers went on to add that the way Rolex Rings IPO grey market premium has remained strong after the closure of its bidding, one can expect strong listing of Rolex Rings shares at Indian bourses.
The market observers went on to add that Rolex Rings IPO grey market premium was at ₹525 to ₹550 range during the subscription period and after that it came down to around ₹430. However, they maintained that dip in share price in grey market after closure of subscription is obvious, but the way Rolex Rings shares have remained strong and once again gaining the lost ground, it indicates that Rolex Rings shares may have a strong listing on 9th August 2021.
What this rise in GMP means?
On how the GMP will impact Rolex rings IPO listing, market observers explained that grey market premium is listing gain expected by grey market from the public issue. As Rolex Rings IPO GMP today is ₹480, it simply means that grey market is expecting share listing at ₹1380 ( ₹900 + ₹480). This means, grey market is expecting more than 50 per cent listing gain from Rolex Rings public issue.
Giving a cue about the expected listing of Rolex Rings shares; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance said, “Considering the FY-21 adjusted EPS of ₹31.93 on a post-issue basis, the company is going to list at a P/E of 28.19 with a market cap of ₹24,510 million, while its peers namely Ramkrishna Forgings and MM Forgings are trading at a P/E of 123.30 and 37.14 respectively.”
Advising lucky bidders to book profit on the listing date Abhay Doshi, Founder at UnlistedArena.com said, “High sentiment in primary markets may emanate in listing gains but one should book profit on the listing date as company growth seems to be missing as revenue from operations remained at ₹6,163.32 million in FY 2020-21 from ₹9,043 million in FY 2019.”
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Rolex Rings IPO: What GMP is signaling about the public issue
Rolex Rings IPO: ₹731 crore public issue got subscribed more than 130 times of the offer and now all eye are set on the finalisation of share allotment process. However, those who bid for the initial offer are keeping an eye on the grey market premium (GMP) of the IPO as well. As per the market observers, Rolex Rings IPO GMP today is ₹480 — ₹30 up from its Wednesday grey market premium. Observers said that after the closure of an IPO, some dip in the grey market premium is expected, but Rolex Rings IPO GMP has not lost much that reflects strong listing of the company shares at Indian bourses.
Rolex Rings share price in grey market today
Rolex Rings IPO GMP today is ₹480, which is ₹30 higher from its Wednesday premium of ₹450. This means, grey market is expecting Rolex Rings share listing at the price of ₹1380 ( ₹900 + ₹480) — around 53 per cent higher from the issue price of ₹880 to ₹900 per equity share. So, Rolex Rings share price in grey market today is ₹1380 per equity share.
What this GMP mean
According to the market observers, after closure of the bidding, Rolex Rings IPO GMP came down from its high range of ₹525-550 to ₹420 and once again it is peaking up once the share allotment process begun. Since, listing is linked to the market mood too, this loss in Rolex Rings IPO GMP should be seen with this specs too as market was under pressure at that time. They went on to add that Rolex Rings GMP range of ₹420 to 480 post-closure of bidding reflects that the least premium that one can expect from this IPO would be in this range.
However, if we go by the stock market experts, they are also bullish on Rolex Ring share listing as they found its financials promising.
Saurabh Joshi, Research Analyst at Marwadi Shares and Finance said, “Considering the FY-21 adjusted EPS (Earnings Per Share) of ₹31.93 on a post-issue basis, the company is going to list at a P/E of 28.19 with a market cap of ₹2,451 crore, while its peers namely Ramkrishna Forgings and MM Forgings are trading at a P/E of 123.30 and 37.14 respectively.” Saurabh Joshi went on to add that the company is one of the leading forging manufacturers with a geographically diversified revenue base and it is available at reasonable valuation as compared to its peers.
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Rolex Rings IPO: What GMP signals and how to check share allotment status
Mirroring massive investors' response, auto components maker Rolex Rings initial public offer (IPO) , that had opened for subscription on July 28 and closed on July 30, was subscribed 130.44 times on its final day of the bidding. The company’s price band was fixed at ₹880-900 per share.
Rolex Rings IPO share allotment has been finalized today. The bidders can check their share allotment status online by logging in at the BSE website here or at the official registrar’s website Link Intime India Private Ltd here.
Ahead of its share allotment, Rolex Rings shares are available at a strong premium (GMP) of around ₹470 in the grey market. The shares are expected to list on the BSE and NSE next week on August 9.
The ₹731-crore IPO received bids for 74,16,00,096 shares against 56,85,556 shares on offer. The qualified institutional buyers (QIBs) category was subscribed 143.58 times, non-institutional investors 360.11 times, and retail individual investors (RIIs) 24.49 times. It had garnered around ₹219 crore from anchor investors ahead of its IPO.
The issue comprised a fresh issue of up to ₹56 crore and an offer for the sale of up to 75 lakh equity shares. Equirus Capital Private Limited, IDBI Capital Markets and Securities Limited, and JM Financial Limited were the managers of the offer.
Many brokerages had recommended Subscribe rating to the issue 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, based in Gujarat, 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. It supplies bearing rings and automotive components to over 60 customers in 17 countries primarily located in India, USA, and Thailand and European countries.
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