Rolex Rings surges 38.8% on debut | Mint
Active Stocks
Thu Feb 22 2024 09:35:43
  1. Tata Steel share price
  2. 144.10 0.17%
  1. Power Grid Corporation Of India share price
  2. 274.30 -2.09%
  1. State Bank Of India share price
  2. 766.40 -0.67%
  1. NTPC share price
  2. 332.75 -1.00%
  1. Tata Motors share price
  2. 917.90 -0.34%
Business News/ Markets / Stock Markets/  Rolex Rings surges 38.8% on debut
BackBack

Rolex Rings surges 38.8% on debut

The stock opened at ₹1,249 and touched a high of ₹1,264.95 and a low of ₹1,240. At 10.05 am, the scrip traded at Rs1,252.75 apiece on the BSE, up 39.2% from its issue price of Rs900 a share

Rolex Rings will utilize the net proceeds from the fresh issue for funding long-term working capital requirements and general corporate purposesPremium
Rolex Rings will utilize the net proceeds from the fresh issue for funding long-term working capital requirements and general corporate purposes

MUMBAI: Shares of Rolex Rings Ltd opened 38.77% higher on debut on Monday after its initial public offering was subscribed over 130 times last week.

The stock opened at 1,249 and touched a high of 1,264.95 and a low of 1,240. At 10.05 am, the scrip was trading at 1,252.75 on the BSE, up 39.19% from its issue price of 900 a share.

Analysts say considering the FY-21 adjusted EPS of 31.93 on a post-issue basis, the company will likely list at a P/E of 28.19 while peers Ramkrishna Forgings and MM Forgings trade at a P/E of 123.30 and 37.14, respectively.

"The company is one of the leading forging manufacturers with a geographically diversified revenue base and is available at reasonable valuation as compared to its peers. However, the client concentration risk and CDR debt restructuring in the past keeps us cautious at the same time from a longer-term perspective", said brokerage firm Marwadi Shares and Finance.

The price band for its initial public offering was fixed at 880-900 a share and the issue opened on 28 July and closed on 30 July.

The IPO comprises a fresh issue of 56 crore and an offer for sale of 750 crore by Rivendell PLC. Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC), currently holds a 41.01% stake in the company.

Equirus Capital, IDBI Capital, and JM Financial are the book lead managers for this issue.

The company will utilize the net proceeds from the fresh issue for funding long-term working capital requirements and general corporate purposes.

As of March 2021, its net debt was at 244.88 crore. The company posted a profit of 86.96 crore against 52.94 crore a year ago. Its revenue from operations stood at 616.33 crore versus 675.33 crore last year.

Based at Rajkot in Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country.

The company has 22 forging lines with a combined installed capacity of 1,44,750 MTPA, machining facilities consisting of 528 spindles with a combined installed capacity of 69 million parts per annum and other machinery including heat treatment furnaces, cold rolling machines and other infrastructure.

It operates windmills with an installed capacity of 8.75 MW. It is in the process of expanding the capacity of its solar projects by an installed capacity of 16 MW and has already placed purchase orders for equipment with installed capacity of 7.35 MW.

The company believes that the proposed expansion will help reduce its carbon footprint and expand profit margins.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 09 Aug 2021, 10:16 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App