Rolex Rings Limited is gearing up to list on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The auto-parts manufacturer had opened its IPO earlier in July. The company made a strong debut in the market with its Rs 731 crore issue. By the end of the trading, the Rolex Rings IPO was subscribed a total of 130.44 times by the investors. After a strong performance, the next order of business for this company is to make its listing happen. The listing date at the time of writing this report was listed as August 9, 2021, which is likely when it will happen. Given that the listing is coming up on Monday, here are a few key details to know about the IPO before the listing.
The grey market premium of the Rolex Rings IPO on August 7, stood at Rs 450. This indicated that the shares were trading at a premium of Rs 1,330 to Rs 1,350 on the unlisted market. This is a decline in share prices according to data gathered which indicated that the shares were trading at a higher premium of Rs 1,430 to Rs 1,450 on the grey market before the IPO opened with a GMP price of Rs 550 at the time.
The Rolex Rings IPO had an issue size of Rs 731 crore and it comprised of a fresh issue and an offer for sale (OFS). The fresh issue was Rs 56 crore and the OFS was at Rs 675 crore with 7,500,000 equity shares along with a face value of Rs 10 per equity share. The price band for the issue was Rs 880 to Rs 900 per equity share.
The public issue also had a lot size of a minimum of 16 shares with a cut-off application amount of Rs 14,400. On the higher end, the lot size stood at Rs 187,200 as the application amount with 208 shares. Individual retail investors for the issue were given an allocation of up to 13 lots at the upper limit of the lot.
Speaking of reservations, the IPO had set aside a reservation for the qualified institutional buyers (QIBs) of 50 per cent, the NII quota for the same was set at 15 per cent. The retail investors saw a reservation of 35 per cent for the issue. The QIB investors had subscribed to the issue a total of 143.58 times. The NIIs on the other hand had subscribed to the issue the most of any of the categories of investors, with a massive subscription of 360.11 times against what they were allotted. The retail investors subscribed to the issue with a health 24.49 times their allotted shares.
The company aims to use the net proceeds from the issue to fund the long-term working capital of the firm. The remainder of the funds will be directed towards other general corporate purposes.
In a note, ICICI Direct spoke about the financial and overall performance of the company. ICICI Direct said, “RRL had entered CDR in 2013. Subsequently, fixed and current assets were secured by encumbrance whereas promoter holdings were pledged. Nonetheless, the company has repaid 95% of its debt (FY21 D/E 0.7x) and is expected to exit CDR before FY22. This should offer flexibility in managing borrowings and taking other business-related decisions. Further, the company is making strides to reduce its carbon footprints and by reducing power costs (~8% of sales) led by investments in renewable energy.”
In FY21 the company had garnered revenue of Rs 616.3 crore and an EBIDTA of 108.8 crore with a 17.7 per cent margin. The net profits stood at Rs 87 crore with a CAGR of 21.4 crore for FY19-21.