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.