On Monday, Rolex Rings stock made a spectacular market debut. Rolex Rings shares opened at Rs 1,250, up 39% from the issue price of Rs 900 per share. The stock increased by up to 40% during the day, reaching an intraday high of Rs 1,263 per share.
Rolex Rings shares were in high demand during the three-day initial public offering, which concluded on July 30. Qualified Institutional Buyers (QIB) subscribed to the Rolex Rings IPO 143.58 times, while Non-Institutional Investors (NII) bid 360 times.
On the offer, Rolex Rings received 74.16 crore offers for just over 56.85 lakh shares. At the cut-off price, a total of 5.47 crore bids were received. Non-institutional investors responded overwhelmingly to the Rolex Rings IPO, as the portion reserved for them was subscribed 294.18 times.
Rolex Rings' 731-crore initial public offering included a 56-crore fresh issue and a 675-crore offer for sale. The firm sold shares at a price range of Rs 880-900 per share, with retail investors able to purchase a minimum of 1 lot of 16 shares up to a maximum of 13 lots. At the upper end of the price band, one lot of Rolex Rings IPO was priced at Rs 14,400.
According to ICICI Direct, the firm is one of the top five forging companies in India. Rolex Rings' clients include top worldwide bearing manufacturers such as SKF, Timken, Schaeffler, NEI, and NRB Bearings. Rolex Rings has made a profit in each of the previous four fiscal years.
The firm earned a net profit of Rs 87 crore in the previous fiscal year, up from Rs 53 crore in the fiscal year 2019-20. The firm is under scrutiny due to a loan payment failure in 2013. Following the debt restructuring, a significant amount of the promoter ownership has been pledged and will stay so until at least March of next year.