Rolex Rings IPO ends with robust subscriptions

Published on Jul 31, 2021 15:11

The initial public offer of automotive component maker Rolex Rings received bids for 74.15 crore shares as against 56.85 lakh shares on offer. The issue was subscribed 130.43 times.

The non-institutional investors (NIIs) category was subscribed 360.11 times. The qualified institutional buyers (QIBs) category was subscribed 143.58 times. The retail individual investors (RIIs) category was subscribed 24.48 times.

The issue opened for bidding on Wednesday (28 July 2021) and closed on Friday (30 July 2021). The price band of the IPO was fixed at Rs 880-900 per share.

The IPO comprised of fresh issue of equity shares aggregating upto Rs 56 crore and an offer for sale (OFS) of 75 lakh equity shares by Rivendell PE LLC, the investor shareholder. Post issue the selling shareholder will have a holding of 34,14,423 equity share amounting about 21.75% of the post issue share capital.

While the company will not get any proceeds from the OFS, about Rs 45 crore out of the proceeds from fresh issue will be used for funding long-term working capital requirements and balance for general corporate purposes.

Ahead of the IPO, Rolex Rings on 27 July 2021 finalized allocation of 24,36,666 equity shares to anchor investors, at Rs 900 per equity share, aggregating to Rs 219.29 crore.

Rolex Rings is one of the leading forging companies in the country engaged in manufacture and supply of hot rolled forged and machined bearing rings and automotive components. The company supplies domestically and internationally to large marquee customers including some of the leading bearing manufacturing companies, tier-I suppliers to global auto companies and some auto OEMs. It is one of the key manufacturers of bearing rings in India and cater to most of the leading bearing companies in India. In FY2021, about 58.2% of its revenue come from bearing rings and balance 41.8% from auto-components.

The company reported a net profit of Rs 86.96 crore and sales of Rs 616.33 crore in the twelve months ended 31 March 2021.