Rolex Rings Ltd IPO

Closed

IPO Synopsis

Rolex Rings Ltd is launching its Initial Public Offering in July 2021. The IPO will be open for bidding since 28th July 2021 and investors can apply for subscriptions till 30th July 2021. 

Fresh Issue of Equity Shares aggregating upto ₹ 56 Crore and Offer for sale of upto 7,500,000 Equity Shares.
The Company proposes to utilise the Net Proceeds towards the following objects:


1.    Funding long-term working capital requirements 
2.    General corporate purposes

 

Rolex Rings Shareholding Pattern

 

% Shareholding

Pre- IPO(%)

Post-IPO(%)

Promoter & Promoter Group

58.99

57.64

Public

41.01

42.36

About Rolex Rings Ltd

Rolex Rings Limited (RRL) is one of the top five forging companies in India in terms of installed capacity (Source: ICRA Report) and a manufacturer and global supplier of hot rolled forged and machined bearing rings, and automotive components for segments of vehicles including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines, and railways, amongst other segments. The company supplies domestically and internationally to large marquee customers including some of the leading bearing manufacturing companies, tier-I suppliers to global auto companies and some auto OEMs. RRL is one of the key manufacturers of bearing rings in India (Source: ICRA Report) and caters to most of the leading bearing companies in India.

As per RHP, we have 22 forging lines with a combined installed capacity of 1,44,750 MTPA, machining facilities consisting of 528 spindles with a combined installed capacity of 69 million parts per annum and other machinery including heat treatment furnaces, cold rolling machines and other infrastructure.

The product portfolio includes a wide range of bearing rings, parts of gear box and automotive components, among others. For Fiscal 2021, RRL supplied bearing rings and automotive components to over 60 customers in 17 countries, primarily located in India, United States of America and in European countries such as Germany, France, Italy, and Czech Republic, and Thailand. The company has maintained long standing relations with customers and 70% of 10 largest customers for Fiscal 2021 have been with the company for over a decade.

Key Points

Rolex Rings Company Strengths :

1) Among the leading forging companies in India.
2) Strong manufacturing capabilities
3) Comprehensive product portfolio
4) Geographically diversified revenue base
5) Strong and consistent financial performance track record

 

Some of the competitive strengths are as follows

  • Comprehensive product portfolio:

Rolex Rings offers a diverse range of hot forged and machined alloy steel bearing rings weighing from 0.01 kg to over 163 kg and with inner diameter of 25 mm to outer diameter of 900 mm. This makes RRL products suitable for a wide range of end-user industries such as automotive, railways, industrial infrastructure and renewable energy, among others. They also offer auto components such as wheel hubs, shafts and spindles, gears, etc. The company’s strength in their product portfolio is shown by the fact that they supply domestically and internationally in each of their product segments. Their product portfolio helps them in offering a wide range of products to their customers, enhances their ability to attract new customers, improve their share of business amongst existing customers and helps de-risk the business through limited dependence on any single product category. 

 

  • Long standing customer relationships and geographically diversified revenue base

For Fiscal 2021, the company supplied bearing rings and automotive components to over 60 customers in 17 countries, primarily located in India, USA and in European countries such as Germany, France, Italy, Czech Republic and Thailand. Notably, they supply domestically and internationally to some of the leading manufacturers of bearings, Tier-I and Tier-II auto-component suppliers and certain auto OEMs. They have been able to maintain long standing relations with their customers and 70% of their 10 largest customers for Fiscal 2021 have been with them for over a decade. Company’s products find end use across automobile sector (including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles and electric vehicles), industrial machinery, wind turbines and railways, amongst other segments.

  • Experienced Promoters and management team with strong domain expertise:

Rolex Rings is led by an experienced management team that has the expertise and vision to manage and grow their business. Manesh Madeka, Chairman and Managing Director, has over 40 years of experience in the industry and has been engaged with the company since its inception. Their production and planning-related business is led by Bhautik Madeka, whole-time Director and the marketing functions and the development of new customers and products related business is led by Mihir Madeka, both of whom have over 18 years of experience in the industry. Besides, members of their senior management team have an average experience of over 24 years with most of such team members having been in the company for more than a decade.

Risk Factors:

Some of the risk factors are as follows

  • RRL is heavily dependent on the performance of the automotive sector in India, Europe, North America, Latin America and some part of Asia. Any adverse changes in the conditions affecting these markets can adversely impact our business, results of operations, cash flows and financial condition.
  • The continuing impact of the outbreak of the COVID-19 could have a significant effect on our operations, and could negatively impact our financial performance.
  • RRL is highly dependent on top 10 customers for their revenues. Any unfavorable decision taken by the customers would impact financial numbers.
     

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

    Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

For details about the new IPO application process, click here.

To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
  • Go to the Current IPOs section
  • Select the IPO you wish to apply for
  • Enter IPO details like price, quantity (lots) and your UPI ID
  • Check details and Confirm
  • Approve the UPI notification received on your phone (in BHIM App or your net banking app)

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

Contact Details of Rolex Rings Ltd IPO

Contact Information

Address

Rolex Rings Limited
B/h. Glowtech Steel Private Limited
Gondal Road, Kotharia, Rajkot, 360 004


Phone: 0281 6699677/577
Email: compliance@rolexrings.com
Website: http://www.rolexrings.com/

Rolex Rings Ltd IPO Lead Manager

Link Intime India Private Ltd

C 101, 247 Park, L.B.S. Marg,

Vikhroli (West), Mumbai - 400083

 

Phone: +91-22-4918 6270 Email: rolex.ipo@linkintime.co.in Website: http://www.linkintime.co.in

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