Rolex Rings IPO subscribed 130x on last day on institutional, HNI interest

The initial public offer (IPO) of Rolex Rings was subscribed 130 times on Friday, the concluding day of the offer. The institutional portion was subscribed 143 times, the wealthy investor portion by 360 times and the retail investor portion by 24.5 times.

The Rs 731-crore IPO generated bids worth Rs 66,744 crore.

Rolex Rings had priced its initial public offer (IPO) between Rs 880-900 per share. The offer comprised a fresh issue of Rs 56 crore and an offer for sale of shares worth Rs 675 crore. Rolex Rings will have a market cap of Rs 2,451 crore at the upper end of the price band.

The promoter holding in the company will decline from 59 per cent to 57.64 per cent following the IPO. For the year ended March 2021, Rolex Rings had reported a net profit of Rs 87 crore on revenues of Rs 616 crore.

The company is a manufacturer and 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, amongst other segments. It also supplies its products to some leading bearing manufacturing companies, tier-I suppliers to global auto companies and some auto original equipment manufacturers (OEM).

Rolex Rings started its manufacturing operations in 1988, with its first manufacturing plant set up in Rajkot. The date of filing its red herring prospectus (RHP) has three manufacturing units in Rajkot. Rolex Rings product portfolio includes a wide range of bearing rings, gearbox, and automotive components.

For fiscal 2021, the company supplied bearing rings and automotive components to over 60 customers in 17 countries, including India, the United States of America, Germany, France, Italy, the Czech Republic, and Thailand. The company plans to utilise the net proceeds from the fresh issue for funding long-term working capital requirements.

Equirus Capital, IDBI Capital Markets and JM Financial were the book running lead managers to the offer.