Rivendell PE to sell stake in Rolex Rings

Rivendell PE to sell stake in Rolex Rings

Rivendell PE, formerly New Silk Route (NSR), will sell a large chunk of its stake in Rolex Rings Ltd during the company’s initial public offering. The private equity firm had backed the auto component maker 14 years ago.

NSR was founded in 2006 by Parag Saxena, the incumbent chief executive officer, former McKinsey chief executive Rajat Gupta, Goldman Sachs veteran Mark Schwartz and hedge fund manager Raj Rajaratnam.

It was one of the high profile private equity companies in India before the global financial crisis of 2008 derailed its investments plans. NSR had invested over $1 billion in over a dozen companies during the period.

In 2007, the PE firm had invested ₹164 crore ($40 million) in Rolex Rings. It has a 45.5% stake in the firm, as per the draft prospectus filed with markets regulator Securities and Exchange Board of India. NSR will sell 6.5 million shares through the IPO, or around half of its current shareholding.

NSR expects to fetch around ₹700 crore through the partial stake sale , said a person aware of its IPO plans, requesting anonymity.

Rolex Rings seeks to raise ₹70 crore in fresh capital, which will be utilized to fund its working capital requirements. “Like many companies which invested heavily in capex, Rolex Rings too went through a bad phase after the Lehmann collapse. Though it went into the so-called corporate debt restructuring (CDR) process, it managed to emerge out of the CDR successfully with hardly any loss for its lenders. Since then the company has been on a growth path," he added.

Investment banks Equirus Capital, IDBI Capital and JM Financial are advising the company on its IPO. “The IPO has been in the works for years now. But the auto slowdown in 2019, followed by the pandemic created a difficult environment for going public," he said.

Rolex Rings reported a revenue of ₹911.2 crore in 2018-19, and ₹675.3 crore in FY20. For the six months ended 30 September 2020, Rolex Rings reported revenue of ₹225.4 crore.

Rolex Rings is a manufacturer and global supplier of hot rolled forged and machined bearing rings, and automotive components for two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles, industrial machinery, wind turbines and railways, among other segments. Rolex Rings, which started operations in 1988 with its first plant in Rajkot, has three manufacturing units in the region.

Gupta had stepped down from NSR in 2012 after his conviction by the US securities regulator in an insider trading case while Schwartz had left NSR in 2008

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Rolex Rings files IPO papers with Sebi

NEW DELHI: Auto-components maker Rolex Rings Ltd has filed preliminary papers with capital markets regulator Sebi to launch an initial share sale.So far this year, 16 companies have filed draft papers for their respective IPOs as these firms are expecting to benefit from an equity market which is flush with liquidity and has seen a sharp increase in new retail investors.Moreover, as many as 15 companies have already come out with their initial share-sales so far in 2021.Rolex Rings' IPO comprises fresh issue of shares worth Rs 70 crore and an offer for sale of up to 65 lakh equity stocks by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC), according to the draft red herring prospectus (DRHP).Currently, Rivendell holds 45.51 per cent stake in Rolex Rings.Proceeds from the fresh issue would be used towards funding long-term working capital requirements as well as general corporate purposes.In addition, the auto component maker expects to receive the benefits of listing of the equity shares on the stock exchanges, enhancement of its brand name amongst existing and potential customers and creation of a public market for its equity shares in India.Based at Rajkot in Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country. For the six months ended September 2020, the company posted a profit of Rs 25.31 crore and its revenue from operations stood at Rs 224.52 crore.For the fiscal year ended March 31,2020, Rolex Rings reported a profit of Rs 52.94 crore as compared to Rs 59.04 crore in the preceding fiscal. Its revenues from operations was at Rs 666 crore in fiscal year ended March 31,2020 as against Rs 904.32 crore in the last financial year.“The continuing impact of the outbreak of the COVID-19 could have a significant effect on our operations, and could negatively impact our business, revenues, financial condition, cash flows and results of operation,” according to the draft papers.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 Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

Rolex Rings Files IPO Papers With Market Regulator

Rolex Rings will use the IPO proceeds to fund its long-term working capital requirements

Rolex Rings, an auto components maker, has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (Sebi) to launch an initial public offering. Rolex Rings' market offering will consist of a fresh issue of shares worth Rs 70 crore and an offer for sale of up to 65 lakh shares by Rivendell PE (formerly known as NSR-PE Mauritius), according to the draft red herring prospectus filed with the market regulator.

The auto component maker will use the IPO proceeds to fund its long-term working capital requirements and for general corporate purposes. The equity shares are likely to be listed on the BSE and NSE.

Rolex Rings is based at Rajkot in Gujarat and is among the leading manufacturers of forged and machined components in the country.

Equirus Capital Private Ltd, IDBI Capital Markets & Securities and JM Financial are the merchant bankers to the issue.