Rolex Rings Limited IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Rolex Rings IPO

Rolex Rings IPO: Key Details

  • Grey Market Premium (GMP) today: ₹450 – ₹470

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Rolex Rings Limited, incorporated in 2003, is one of the top five forging companies in India. It is a manufacturer and global supplier of hot rolled forged and machined bearing rings, and automotive components for segments of vehicles including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines and railways, amongst other segments.

They supply 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. They are one of the key manufacturers of bearing rings in India and cater to most of the leading bearing companies in India such as SKF India Limited, Schaeffler India Limited, Timken India Limited, NEI, and NRB which collectively account for 81% of the market share of the Indian bearing industry.

Competitive Strengths

  • A comprehensive product portfolio
  • Manufacturing capabilities which offer scale, flexibility and locational advantage.
  • Long standing customer relationships and geographically diversified revenue base
  • Experienced Promoters and management team with strong domain expertise
    Strong financial performance over the past few years

Company Strategy

  • Increasing its share of business amongst existing customers
  • Expand the customer base
  • Continuing focus on improving operational efficiency
  • Further enhance manufacturing infrastructure and product portfolio
  • Reduce power costs and carbon footprint
  • Further improve financial risk profile

Proceeds from fresh issue of Rolex Rings IPO will be used to:

  • Funding longterm capital expenditure requirements and
  • General corporate purposes

The proceeds from the Offer for Sale shall be received by the Selling Shareholder (i.e. Rivendell PE LLC).

Rolex Rings IPO: Financials

201920202021
Revenue from Ops₹904.32 Cr₹665.99 Cr₹616.33 Cr
Profit before Excep*₹140.56 Cr₹72.08 Cr₹75.19 Cr
Profit after Tax59.01 Cr₹52.94 Cr₹86.96 Cr
EPS (Basic)24.6222.0836.26
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS29.5929.7430.42
* Weighted Average for last 3 years

Comparison with listed industry peers

CompanyP/E (Cap)
Rolex Rings30.42
Highest (Ramkrishna Forgings)116.39
Lowest (MM Forgings)38.64
Sector Avg77.52

Rolex Rings IPO Dashboard

Issue Details

TypeValue
Issue Size₹806 Cr
Offer for Sale₹56 Cr
Offer for Sale₹750 Cr
Face Value₹10/- per Equity Share
IPO Price₹880 – ₹900
Lot Size16 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open28/07/2021
Bid Close30/07/2021
Allotment Finalization04/08/2021
Initiation of Refunds05/08/2021
Credit of Shares06/08/2021
Listing Date09/08/2021

Lot Size and Price

LotsSharesAmount
116₹14,400
13208₹1,87,200

Promoter Holding

HoldingPercentage
Pre-Issue58.99 %
Post-Issue57.64 %

Rolex Rings IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%[●] shares
NII15%[●] shares
RII (Retail)35%[●] shares
Total100%[●] shares

Rolex Rings IPO: Risks

  • Defaulted in payment of certain loans in the past, and have undergone Coporate Debt Restructuring
  • Heavily dependent on the performance of the automotive sector in India, Europe, North America, Latin America and some part of Asia. Any adverse changes in the conditions affecting these markets can adversely impact the business
  • Any shortages, slowdown or shutdown in its manufacturing operations may lead to under-utilization at existing manufacturing facilities
  • Top 10 customers accounted for a substantial majority of the revenue.
  • The demand of its products in foreign countries is subject to international market conditions and regulatory risks

For complete internal and external risk factors, you can refer to the RHP of the company.

Rolex Rings IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime
C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: 022 4918 6200
Email: [email protected]

Lead Managers of the Issue

JM Financial Limited
Equirus Capital Private Limited
IDBI Capital Markets & Securities Limited

Phone: +91 22 4332 0700 / +91 22 6630 3030
Email: [email protected]

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