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Rolex Rings Limited IPO: Study Before Subscribing

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Among the top 5 forging companies in India, Rolex Rings Limited will launch its initial public offer (IPO) on July 28, 2021. The offer will close on July 30, 2021 and the company has fixed the price band at Rs. 880-900 per equity share.

About Rolex Rings Limited

Rolex Rings Limited is among the top five forging companies in India in  terms of installed capacity. The company manufactures hot rolled forged & machine bearing  rings and automotive components used across vehicle  segments (including 2-wheelers, passenger vehicles, commercial  vehicles, off-highway vehicles, electric vehicles) and other segments,  namely industrial machinery, wind turbines and railways. The company supplies its products to automotive companies and  leading bearing manufacturers such as SKF India, Schaeffler India,  Timken India etc.  For Fiscal 2021, the company provided bearing rings and automotive  components to over 60 customers in 17 countries, primarily located  in India, the United States of America, and European countries such as  Germany, France, Italy, and the Czech Republic and Thailand.  Currently, the company have three manufacturing units in Rajkot with an  annual achievable capacity of 144,750 MTPA in forging and 69  million parts per annum in machining.

Rolex Rings Limited IPO Issue Details

OPENS ON: July 28, 2021
CLOSES ON: July 30, 2021
Price band: Rs. 880 – Rs. 900 per share
Lot size: 16 shares
One lot costing: Rs. 14,400
Face Value: Rs. 10 per share
Listing on: NSE, BSE
Issue size: Rs. 731.00 Cr (Fresh issue: Rs. 56.00 Cr + Offer For Sale: Rs. 675.00 Cr)
Shareholding: Promoter holding will stand at 57.64% post-issue from 58.99% pre-issue.

Will list on the exchange on August 9, 2021.

Objects of the issue:

  • Funding long-term working capital requirements. 
  • General corporate purposes.

Interesting facts about Rolex Rings Limited IPO:

  • The company is highly dependent on the top 10 customers for its revenue. For Fiscal 2021, 2020, and 2019, these customers have accounted 72.62%, 76.94%, and 65.56% of revenue from operations.
  • Considering the FY-21 adjusted EPS of Rs. 31.93 on a post-issue basis,  the company is going to list at a P/E of 28.19 with a market cap of  Rs. 24,510 mn, while its peers namely Ramkrishna Forgings and MM  Forgings are trading at a P/E of 123.30 and 37.14 respectively.

Get the complete coverage of the Rolex Rings Limited IPO in the MSFL Research Report Here. To apply for Rolex Rings Limited IPO, you can do it from our Marwadi Shares & Finance Ltd website.

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