Rolex Rings jumps 39% on trading debut after strong IPO show
Auto components maker Rolex Rings Ltd made a stellar stock market debut on Monday with its shares listing at a premium of almost 39% to the issue price as benchmark indexes remain near record highs.
Shares of Rolex Rings started trading at Rs 1,250 apiece on the National Stock Exchange, up from the initial public offering of Rs 900.
The shares touched a high of Rs 1,263 before paring some gains on profit-taking to trade around Rs 1,167.80 apiece.
Rolex joins many other companies that have made strong trading debuts this year, thanks to buoyant stock markets. Food delivery company Zomato had gained 66% on its listing day while KIMS Hospitals, Dodla Dairy and Shyam Metalics and Energy Ltd all climbed 20-23% on debut.
Another auto component maker, Sona BLW Precision Forgings Ltd, had made its debut on June 24 with a premium of barely 4% but rallied to close the first day with gains of 24%. Sona BLW is now up around 64% from its IPO price.
Rolex IPO details
Rolex’s debut comes after the company’s IPO subscribed 130.44 times as it received bids for 74.16 crore shares for the 56.85 lakh shares on offer.
The quota for qualified institutional buyers was covered almost 144 times while the non-institutional investors’ portion was subscribed 360 times. The quota reserved for retail individual investors was subscribed 24.5 times.
The IPO was a combination of a fresh share issue and a sale of shares by existing shareholders. The company raised Rs 56 crore via the fresh issue while private equity firm Rivendell PE pocketed Rs 675 crore through an offer for sale.
Rolex is among the top five forging companies in India. It makes hot-rolled forged and machined bearing rings, and components for cars, bikes commercial vehicles, electric vehicles, industrial machinery, wind turbines and railways. It started manufacturing operations in 1988 at its first plant in Rajkot, Gujarat. It now has three factories in Rajkot.
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