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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 - Nick Compton Admits ‘He Got it Wrong’ After Virat Kohli-Led India Beat England

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 shares make a strong market debut

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Auto components maker Rolex Rings made its stock market debut on Monday with its shares listing at ₹1,250 per share on the NSE, surging nearly 39% premium over its issue price of ₹900 per share. On BSE, the stock was trading at ₹1,252 per share.

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.

The issue comprised a fresh issue of up to ₹56 crore and an offer for sale (OFS) 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.

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.

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. Equirus Capital Private Limited, IDBI Capital Markets and Securities Limited, and JM Financial Limited were the managers of the offer.

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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Rolex Rings IPO: Shares list at Rs 1200, 33% premium over IPO price

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Leading forging company Rolex Rings shares had a bumper debut as the stock listed with a premium of 33 percent over issue price of Rs 900 per share on August 9.

The stock opened at Rs 1200 on the BSE.

The listing was in line with analyst expectations considering its massive grey market premium of 50 percent, stellar subscription numbers, favourable secondary market conditions, sticky clientele and positive outlook over bearing rings and auto components industry.

The Rs 731-crore public issue of the automotive components manufacturer had seen overwhelming response from investors as it was oversubscribed by 130.44 times during July 28-30. The portion set aside for qualified institutional buyers was subscribed 143.58 times, non-institutional investors portion was booked 360.11 times and the retail portion witnessed 24.49 times subscription.

The offer had comprised a fresh issue of Rs 56 crore and an offer for sale of Rs 675 crore by Rivendell PE LLC. The company will utilise the net proceeds from fresh issue for working capital requirements.

Majority of brokerage houses had recommended a subscribe rating for Rolex Rings IPO. “At the upper band of IPO price of Rs 900, it is valued at a P/E multiple of 35 (on recalculated EPS excluding the Rs 25 crore deferred tax credit) which is lower than the industry average of 83,” said KRChoksey Research.

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Considering the company’s long standing relationships and diverse product portfolio in the wake of not so robust financials, concentrated client base and sub-optimal capacity utilisation, the brokerage recommended a ‘subscribe’ for listing gains.

Nirmal Bang also recommended subscribing to the issue, from a long term perspective.

“Rolex is a proxy play on global growth in the industries of bearings and auto components. With global as well as domestic industrial investment cycle having troughed out last year, we expect a gradual recovery to have a positive rub-off on auto ancillary plays such as Rolex. We observe that Rolex’s financial metrics as well as valuations are broadly in line with that of other players. The historical growth is lagging others which is compensated by the company’s higher return ratios,” the brokerage reasoned.

Rolex Rings is one of the top five forging companies in India, designing, manufacturing and supplying hot rolled forged and machined bearing rings, and automotive components for vehicles including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles, industrial machinery, wind turbines and railways.

Rolex supplies its products to leading bearing manufacturers such as SRF India, Schaeffler India and Timken India which account to 81 percent of the market share of Indian bearings industry.

Rolex has three manufacturing plants in Rajkot with 22 forging lines, from where it supplies its products to over 60 customers in 17 countries, primarily located in India, US and EU countries. Its overseas revenue formed 56 percent of total 70 percent of the 10 largest customers have been with the company for over a decade.

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