Rolex Rings IPO – Facts you should know

Rolex Rings IPO opens on 28 July and closes on 30 July. It is a mix of fresh issue and an OFS and is priced in the band of Rs.880-900. Here are some facts to know about the Rolex Rings IPO.

- The issue consists of a fresh issue of Rs.56 crore and an offer for sale of 75 lakh shares. At the upper end of the price band, this works out to Rs.675 crore of OFS taking the total issue size of Rolex Rings IPO to Rs.731 crore.

- Retail investors are allowed to bid in minimum lots of 16 shares and in multiples of 16 shares thereof. They can apply for a maximum of 13 lots which translates into an investment of Rs.187,200. Upper limit for retail quota is Rs.2 lakh per application.

- Rolex Rings is ranked among the top-5 bearing companies in terms of installed capacity. It basically manufactures hot rolled forged and machined bearing rings and automotive components. Rolex Rings basically caters to the needs of two wheelers, passenger vehicles, CVs, EVs, railways and even industrial machinery.

- Rolex Rings has installing forging capacity of 144,750 MTPA plus capacity of 69 million machine parts annually. Its location in Rajkot helps it to easily access the automobile clusters in North India, western belt and even in South India. Rolex also supplies to over 60 global customers spread across 17 countries.

- For FY21, despite COVID stress, Rolex Rings earned net profit of Rs.87 crore on sales of Rs.616 crore implying net margins of 14.12%. Between FY19 and FY21, Rolex Rings reduced debt equity ratio from 1.79X to 0.70X.

- Rolex is likely to debut with a market cap of Rs.2,450 crore and a P/E ratio of 28X, which is competitive in the forging industry.
 

Also Read: Rolex Rings IPO - An Indirect Automobile Play