Home >Markets >Stock Markets >Rolex Rings IPO: What GMP is signaling about the public issue

Rolex Rings IPO: 731 crore public issue got subscribed more than 130 times of the offer and now all eye are set on the finalisation of share allotment process. However, those who bid for the initial offer are keeping an eye on the grey market premium (GMP) of the IPO as well. As per the market observers, Rolex Rings IPO GMP today is 480 — 30 up from its Wednesday grey market premium. Observers said that after the closure of an IPO, some dip in the grey market premium is expected, but Rolex Rings IPO GMP has not lost much that reflects strong listing of the company shares at Indian bourses.

Rolex Rings share price in grey market today

Rolex Rings IPO GMP today is 480, which is 30 higher from its Wednesday premium of 450. This means, grey market is expecting Rolex Rings share listing at the price of 1380 ( 900 + 480) — around 53 per cent higher from the issue price of 880 to 900 per equity share. So, Rolex Rings share price in grey market today is 1380 per equity share.

What this GMP mean

According to the market observers, after closure of the bidding, Rolex Rings IPO GMP came down from its high range of 525-550 to 420 and once again it is peaking up once the share allotment process begun. Since, listing is linked to the market mood too, this loss in Rolex Rings IPO GMP should be seen with this specs too as market was under pressure at that time. They went on to add that Rolex Rings GMP range of 420 to 480 post-closure of bidding reflects that the least premium that one can expect from this IPO would be in this range.

However, if we go by the stock market experts, they are also bullish on Rolex Ring share listing as they found its financials promising.

Saurabh Joshi, Research Analyst at Marwadi Shares and Finance said, "Considering the FY-21 adjusted EPS (Earnings Per Share) of 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 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." Saurabh Joshi went on to add that the company is one of the leading forging manufacturers with a geographically diversified revenue base and it is available at reasonable valuation as compared to its peers.

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