Rolex Rings Limited IPO : Key Highlights and Company Information

Rolex-Rings-Limited-IPO--Key-Highlights-and-Company-Information

Rolex Rings Limited initiated its operations in 2003. The company is among the top 5 forging companies domestically. The company exports its products to more than 15 countries. The major ones are Germany, France, Thailand, USA, Italy etc. Rolex Rings has a manufacturing capacity of 144700 MTA. This product comes through the production facilities at 3 locations in Rajkot.

The company majorly produces automotive spare parts and machine bearing rings. Such products are used in all types of vehicles such as 2 wheelers, 4 wheelers, heavy commercial vehicles, electric vehicles etc. use the products manufactured by Rolex Rings Limited.

IPO DETAILS

The ROLEX RINGS LIMITED  IPO is set to launch on 28th July, 2021. The subscription timeline extends till 30th July, 2021. The size for the IPO is 700 Crore Rs. Shares issued through Offer for sale are 630 Crore Rs. Shares worth Rs. 70 Crore are issued through Fresh issue. The minimum lot size is 15 shares and the price is set at 960 Rs. – 970 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE 28th July, 2021
IPO CLOSING DATE 30th July, 2021
ISSUE TYPE Book Built Issue
Face Value per share 10 Rs. per share
IPO price band 960 Rs. – 970 Rs.
LOT SIZE 15 shares
MINIMUM ORDER QUANTITY 15 shares
ISSUE SIZE 700 Crore Rs.
OFFER FOR SALE 630 Crore Rs.
FRESH ISSUE 70 Crore Rs.
LISTING AT NSE, BSE
LISTING DATE 9th Aug, 2021

IMPORTANT DATES

IPO OPENING DATE 28th July, 2021
IPO CLOSING DATE 30th July, 2021
IPO ALLOTMENT DATE 4th Aug, 2021
REFUNDS 5th Aug, 2021
DEMAT A/C CREDITED ON 6th Aug, 2021
IPO LISTING DATE 9th Aug, 2021

The Rolex Rings Limited IPO begins for subscription from 28th July, 2021. The IPO subscription would continue till 30th July, 2021. The allotment status for the shareholders who applied would come on 4th Aug, 2021. The refunds for the ones who did not get allotment would be initiated on 5th Aug, 2021. The DEMAT accounts of shareholders would be credited on 6th Aug, 2021. The listing of the company would be accompanied on 9th Aug, 2021.

PROMOTER AND LEAD MANAGERS

The promoters for the company are Jiten Madeka, Rupesh Madeka, Pinakin Madeka, Manesh Madeka and Bhautik Madeka.

The lead managers for the company are :

  • IDBI Capital Market Services Limited
  • Equirus Capital Private Limited
  • JM Financial Consultants Private Limited

The minimum lot size for the company is decided at 15 shares. This holding accounts to Rs. 14550. The maximum lot size is decided at 13 shares. This amounts to Rs. 187200. Hence the company’s final holdings would be set as :

  Shares Amount
Minimum 15 shares 14550 Rs
Maximum 13 shares 187200 Rs

OBJECTIVES FOR THE IPO

  • The money from the IPO can also be utilized to meet general corporate purposes.
  • The company is running short on the capital budget. Hence the money is planned to get diverted towards long term capital expenditure.

COMPANY FINANCIALS

Particulars (in Million Rs.) 2020-21 2019-20 2018-19
ASSETS 6861 7822 8034
REVENUE 6753 9112 7915
NET PROFIT 529 590 728

The asset base for the company’s 2019 year has been great. It is close to 8050 Crore RS. with such a base the revenue generation is close to 100% capacity. Hence the revenue and assets are in sync which is a very good sign for any company. Such a return on asset base is very rare. The profit out come from the revenue is near to 10%. Hence profits are 10% of the revenue earned. 

However in the upcoming years, a change in trend is noticed. The company has been selling off the assets but has recorded a rise in revenue for 2020 year. The profit margin has shrunk to 6%. Thus the first bell for attention is here. Secondly in the next year 2021, the assets have decreased alongside the revenues. The revenues are 100% of asset base, but the revenue has taken a hit of almost 2500 Crore Rs from previous year. Also the profits have decreased by more than 60 Crore Rs. 

Hence one should invest wisely in the company after noticing the financial performance for quite a long time. Also the further expansion pans of the company would play a major role in its investment inflow

PROS

  • Rolex Rings is among the top 5 domestic companies in India into its business segment.
  • The company has its business reach in more than 15 countries.
  • Rolex Rings has an annual manufacturing capacity of 144750 MT.
  • It has a very diversified product line. 

CONS

  • With an export business for more than 15 countries, it is risky to have all domestic manufacturing facilities. However there should be some storage or major manufacturing plant across the world.

ROLEX RINGS LIMITED IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

  1. Logging into Zerodha console through its website or KITE platform.
  2. Clicking the IPO link present in the Portfolio section
  3. Click the ROLEX RINGS LIMITED IPO button and press the BID button
  4. Entering the details asked for like UPI ID, Quantity and price
  5. Submit the application form of IPO
  6. Visiting the application of UPI for approving the transaction

Now, applying for an IPO online is possible with most of the Discount and online brokers.

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