Rolex Rings IPO: Today is the last chance for auto components maker Rolex Rings to subscribe to the IPO. This IPO was open for subscription on 28 July. In this IPO of Rs 731 crore, bids can be placed in lots of 16 shares. The company has fixed a price band of Rs 880-900 for bidding. The face value per share is Rs 10. How excited investors are about this IPO can be gauged from the fact that it got oversubscribed on the very first day. The issue was subscribed 9.26 times till July 29 and the share reserved for the largest retail investors was subscribed about 15.89 times. Its shares can be listed on BSE and NSE on August 9. ICICI Direct, Reliance Securities and Ventura Securities have given rating of apply while Axis Capital is neutral.
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Issue of new shares worth Rs 56 crore
The IPO of Rolex Rings will see issue of new shares worth Rs 56 crore while shares worth Rs 675 crore will be issued by Rivendell PE LLC (formerly NSR-PE Mauritius LLC) under an Offer for Sale (OFS). The funds raised through new shares will be used by the company to meet its long-term working capital requirements and will also be used for general corporate purposes. Equirus Capital Private Limited, IDBI Capital Markets & Securities Limited and JM Financial Limited are the Book Running Lead Managers for this issue.
Profit increased but revenue declined
Located in Rajkot, Gujarat, this Rolex Rings is a leading manufacturer of forged and machined components in the country. In the last financial year 2020-21, the company had a profit of Rs 86.95 crore, while in its last financial year 2019-20, the company had a profit of Rs 52.94 crore. However, its revenue declined. Its revenue through operations declined from Rs 666 crore in the financial year 2019-20 to Rs 616.36 crore in the financial year 2020-21.