Rolex Rings, automotive components manufacturing company, is all set to make its market debut on Monday. It’s expected that there would be certainly an opportunity of listing gains, Zee Business Managing Editor and market guru had said during the initial public offer’s (IPO) preview.
Singhvi had suggested that the investors with a high-risk appetite should apply for Rolex Rings IPO, adding further, it is unlikely that the stock will be listed at a discount and can apply for listing gains.
The market guru expects, “Rolex Rings to list in Rs 1200-1300 per share range against issue price of Rs 900 apiece and advises investors to book profit on listing with a stop loss of Rs 1100 a share.”
The IPO of Rolex Rings was launched on July 28 and closed on July 30, 2021, for a size of Rs 731 crores, which also comprised a fresh issue of Rs 56 crore and an offer-for-sale (OFS) of up to Rs 75 lakh equity shares by Rivendell PE LLC. The offer was in a price range of Rs 880-900 a share.
The IPO was oversubscribed by 130.44 times as it received bids for 74,16,00,096 shares against 56,85,556 shares on offer, as per data available with National Stock Exchange (NSE).
The qualified institutional buyers (QIBs) category was subscribed 143.58 times, non-institutional investors 360.11 times, and retail individual investors (RIIs) 24.49 times.
The net proceeds from the fresh issue would be used towards funding long-term working capital requirements as well as general corporate purposes.
Rajkot-based company — Rolex Rings is among the leading manufacturers of forged and machined components in the country. The equity shares of the company will be listed on BSE and NSE.
In his preview, Singhvi had also said that the valuations are attractive in comparison to other companies in this segment in terms of Price-to-Earnings multiple, return on equity, and profit margins.
