InvestorQ : Can you share the details of Rolex Rings Limited IPO, and should I buy?
Tanya Mehta made post
IPO

Can you share the details of Rolex Rings Limited IPO, and should I buy?

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Priyanka Singh answered.
2 months ago
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IPO Insights:

IPO Opening Date28 July 2021
IPO Closing Date30 July 2021
Share PriceRs 880-900 per share
Market lot16 Shares
Listing atBSE & NSE
Fresh IssueRs 70 crore
Offer for SaleRs 6.50 crore
Face ValueRs 10 per share

Rolex Rings was incorporated in 2003 and is among the top 5 forging companies in India. It manufactures hot rolled forged & machine bearing rings and automotive components that are typically used across segments i.e., 2-wheelers, commercial vehicles, passenger vehicles, electric vehicles, industrial machinery, off-highway vehicles, wind turbines, railways, etc. The company supplies its products to domestic as well as international markets, to various automotive companies and leading manufacturers such as SRF India, Timken India, Schaffler India, etc. In 2020, the company has exported its products to over 17 countries including France, Italy, Germany, Thailand, the USA, and others. Currently, it is operating 3 manufacturing plants in Rajkot with 22 forging lines with an aggregated installed capacity of 1,44,750 MTPA.

Strengths:
The company has strong manufacturing capabilities.
It is among the leading forging companies in India.
The company has a geographically diversified product portfolio.
Its financial performance is consistent and its financials appear attractive to an investor.

Financials: (Just an excerpt)
Total Assets of Rs. 6,710.26 million.
Total Revenue of Rs. 2,254.59 million.
Profit After Tax of Rs. 253.14 million, as of 30th-September-2020.
The company would be utilizing the receipts towards meeting its long-term working capital requirements, and general corporate purposes.

Should you buy it?
You can subscribe to the issue with a long-term growth perspective as the company’s financials are strong and show signs of significant growth over the years. However, if you are looking for just listing gains, this might not be the right option for you. There would not be tremendous listing gains on this IPO, and the margin would be less as compared to other IPO options. However, you should do thorough research to make sure you put your money in the right place. The view expressed here is purely personal.

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