IPO Alert: Rolex Rings opens on 28 July 2021

Blog | IPO

After a rough ride in 2020, the automobile sector is slowly recovering in 2021. A combination of factors, including the easing of lockdown restrictions and pent-up demand are driving auto sales. As the revival picks up pace, global auto parts manufacturer Rolex Rings is set to launch its public issue. We bring you all the details about this latest IPO.

Key details

  • IPO size: ₹731 crore
  • Fresh issue: ₹56 crore
  • Price band: ₹880–₹900 per share
  • Lot size: 16 shares
  • Cost per lot: ₹14,400
  • Issue opens: 28 July 2021
  • Issue closes: 30 July 2021 
  • Basis of allotment date: 04 August 2021 
  • Initiation of refunds: 05 August 2021
  • Credit of shares to demat account: 06 August 2021
  • Expected listing date: 09 August 2021

About Rolex Rings

Rolex Rings is a global automotive component manufacturer, based in Rajkot, Gujarat. The company manufactures hot-rolled forged and machined bearing rings and automotive parts, which are used in two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles, industrial machinery, wind turbines and railways. 

It makes a diversified range of bearing rings—weighing from 0.01 kg to over 163 kg with an inner diameter of 25 mm to outer diameter of 900 mm—which are suitable for a wide range of end-users. The company has 60 customers in 17 countries, including India, and  derives more than half of its revenues from overseas. 

Rolex Rings’ customers include some of the top global and domestic names such as SKF India, Schaeffler India, Timken India, NEI and NRB. Importantly, the company has forged a long-term relationship with its customers. It has been doing business with 7 of its 10 largest customers for over a decade now. 

Meanwhile, Rolex Rings has also managed to post healthy profit growth. Between FY19 and FY21, its net profit grew at a compounded annual growth rate (CAGR) of 21.3%. 

About the issue

The IPO size is ₹731 crore. Of which, the fresh issue is 56 crore. This will be used for funding long-term working capital requirements and general corporate purposes. The remaining ₹675 crore is an offer for sale from the promoters.

IPO allocation quota

QIB NIB Retail
50% 15% 35%

To know more about the IPO, read its red herring prospectus here. The issue opens on 28 July 2021 and you can subscribe to Rolex Rings with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!