Shares Of Rolex Rings End 29.7% Higher On Market Debut
Shares of Rolex Rings gained on debut after its initial public offering witnessed strong investor interest.
The stock listed at Rs 1,250 apiece on the National Stock Exchange, a 38.9% premium to its issue price of Rs 900. The stock saw an intraday high of Rs 1,263 and an intraday low of Rs 1,105 and closed 29.67% higher at Rs 1,167 on its market debut.
The company’s Rs 731-crore IPO was subscribed 130.44 times, making it the fifth most subscribed issue so far this year. Demand was led by non-institutional investors with their portion subscribing 360.11 times. Retail and institutional investor appetite was also healthy.
Rolex Rings plans to use Rs 45 crore from the fresh issue to augment its long-term working capital requirement.
Rolex Rings is one of the top five forging companies in India, according to ICRA Ltd. It is a manufacturer and global supplier of hot-rolled forged and machined bearing rings, and automotive components. The company has three manufacturing facilities in Gujarat.
Nearly 53.7% of the revenue comes from bearing rings and 38.5% from automotive components. Top 10 customers account for 72.6% of the revenue. Exports account for 56.10% of the revenue.
The company supplies to over 20 companies across 17 countries and has a production capacity of 145K MT per annum.