Rolex Rings IPO opened on July 28 and Friday, July 30 is the last day of its initial public offering (IPO) subscription.- So far, in the last two days of issue, it has received good response from retail investors and very tepid response from qualified institutional buyers (QIB).
- The company looks to raise ₹731 crore with a price band of ₹880-900.
So far, in the first two days of subscription, the IPO has received good response from retail investors. However, it saw a tepid response from qualified institutional buyers (QIB).
The portion reserved for retail investors was subscribed 14.09 times the issue size on the second day of the issue i.e., July 29 as of 4 p.m.
Overall, the issue was subscribed 8.16 times on the second day. The IPO has received bids for 4.6 crore equity shares against the IPO size of 56.85 lakh equity shares.
The IPO for Rolex Rings opened Wednesday, July 28 and will close on July 30 with a price band of ₹880-900.
Further, most analysts have recommended subscribing to the IPO on good outlook for the automotive industry.
“We observe that the company’s financial metrics as well as valuations are broadly in line with that of other players. The historical growth is lagging others, which is compensated by the company’s higher return ratios. Considering these metrics, we recommend subscribing to the issue from a long term perspective, “ said a report by Nirmal bang Securities.
Analysts at Ventura Securities see an upside of 31% from the offer price of ₹900 over a period of 18-24 months. “Our target price of ₹1,177 (15 times FY24 earnings) represents a potential upside of 31% from the offer price of ₹900 over a period of 18-24 months. Better than expected recovery in the global economy, a rebound of the domestic automotive industry and the management’s guidance on higher capacity utilisation in the coming years bolster our confidence in improving revenue growth and profitability,” added the report.
On the other hand, analysts at Angel Broking said that while valuations of the company are capturing all positives, promoter picking up 25 lakh shares in the company at ₹10 per share before the IPO is a concern.
The company recently issued shares over 25 lakh to promoters at Rs 10 each on July 16 through optionally convertible redeemable preference shares (OCRPS), while it has set a price band of Rs 880-900 per share. “This way promoters received 7.29% stake in the company for ₹2.3 crore weeks ahead of the IPO,” said a $4.
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