Rolex Rings IPO subscribed 130.44 times on final day

Mumbai: The 731 crore initial public offering (IPO) of auto-components manufacturer Rolex Rings received an overwhelming response from all the categories of investors.

The issue was subscribed 130.43 times on the final day. The offer received bids for over 741.5 million equity shares against the total issue size of 5.69 million equity shares, according to the exchanges showed.

Qualified institutional buyers (QIBs) portion was subscribed 143.58 times, while those of non-institutional investors were subscribed 360.11 times and that of retail individual investors (RIIs) was subscribed 24.48 times.

The issue comprised a fresh issue of shares worth 56 crore and an offer for sale of shares worth 675 crore by Rivendell PE LLC. The price band for the offer was set at 880-900 apiece.

From the share sale, the company will only get 56 crore, which will be used for funding long-term working capital requirements and general corporate purposes, the company said.

The company manufactures hot rolled forged and machine bearing rings and automotive components that are used across vehicle segments and other segments namely industrial machinery, wind turbines and railways.

Anand Rathi in an IPO note said “At the Upper end, the company is offered at a price to equity of 28.2 times on basis of its FY21 Earnings attributable to Post Issue Equity Share demanding a Market Cap of 24,510 million. The company has a comprehensive product portfolio, manufacturing capabilities which offer scale, flexibility and locational advantage, strong management team and the company reported return on net worth (RoNW) of 24.38% in FY21″.

Rolex Rings supplies bearing rings and automotive components to over 60 customers in 17 countries primarily located in India, USA, and Thailand and European countries.

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