Rolex Rings IPO | Grey market premium jumps 50% ahead of opening


Automotive components manufacturer Rolex Rings share price premium jumped 50 percent in the grey market ahead of the opening of its IPO. The public issue will be open for subscription between July 28-30. The price band for the offer has been fixed at Rs 880-900 per equity share.

Rolex Rings shares are trading at Rs 1,350, a premium of Rs 450 over the higher end of the price, data available on the IPO Watch and IPO Central showed.

The grey market is an unofficial platform. The trading in shares starts from the announcement of the price band till the listing of shares on the bourses.

The company aims to mobilise Rs 731 crore through its public offer which comprises a fresh issue of Rs 56 crore and an offer for sale of 75 lakh equity shares by Rivendell PE LLC. The net proceeds from the fresh issue will be utilised for working capital requirements.

Its equity shares are proposed to be listed on the BSE and National Stock Exchange on August 9.

Also Read – Rolex Rings IPO to open on July 28: 10 key things to know about the issue and company

Rolex Rings is one of the top five forging companies in India in terms of installed capacity. It manufactures hot rolled forged & machine bearing rings and automotive components that are 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.

Currently, the company has three manufacturing units in Rajkot with an annual achievable capacity of 1,44,750 MTPA in forging and 69 million parts per annum in machining.

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For FY21, the company supplied bearing rings and automotive components to over 60 customers in 17 countries, primarily located in India, the US and in European countries such as Germany, France, Italy, and the Czech Republic, and Thailand.

“Considering the FY21 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 2,451 crore, while its peers namely Ramkrishna Forgings and MM Forgings are trading at a P/E of 123.30 and 37.14 respectively,” said Marwadi Financial Services which assigned a subscribe (with caution) rating to this IPO.

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