Stocks

Rolex Rings IPO fully subscribed within hours of opening

PTI New Delhi | Updated on July 28, 2021

Non-institutional investors category was subscribed 7 per cent, while those reserved for retail individual investors was subscribed 2.20 times

Auto components maker Rolex Rings’ initial public offering (IPO) was fully subscribed within hours of opening on Wednesday.

The IPO received bids for 63,47,712 shares against 56,85,556 shares on offer, translating into 1.12 times subscription, according to data available with NSE till 11:25 am.

Non-institutional investors category was subscribed 7 per cent, while those reserved for retail individual investors (RIIs) was subscribed 2.20 times.

The IPO comprises a fresh issue of up to ₹56 crore and an offer for sale of up to 75 lakh equity shares.

The offer is in a price range of ₹880-900 per share. At the upper end of the price band, the IPO will fetch ₹731 crore.

Rolex Rings on Tuesday garnered a little over ₹219 crore from anchor investors.

Fund deployment

Proceeds from the fresh issue would be used towards funding long-term working capital requirements as well as general corporate purposes.

In addition, the auto component maker expects to receive the benefits of listing the equity shares on the stock exchanges, enhancement of its brand name among existing and potential customers, and the creation of a public market for its equity shares in India.

Based in Rajkot, Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country.

Equirus Capital, IDBI Capital Markets and Securities and JM Financial are the managers to the offer.

The equity shares of the company will be listed on the BSE and the NSE.

Published on July 28, 2021

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