IPO-Note Rolex Rings Limited
Rs.880-Rs.900per Equity share Recommendation: Subscribe

Company Profile: –

Rolex Rings Limited(RRL) is manufacture and supplier of Machine bearing rings, automotive components and hot rolled forged for Electric vehicles, Commercial vehicles, Passenger vehicles,two wheelers, Off-Highway vehicles, Industrial Machinery, Railways and Wind Turbines.Company is one of the top five forging companies in India in terms of Installed capacity and offers diverse range from 0.01 kg to 163 kg with the inner and outer diameter of 25mm to 900mm that makes it products suitable for industries like Railways, Industrial Infrastructure, Renewable energy etc. Company supplied its product in 17 countries to over 60 customers and having long standing relationship over a decade with 70% of 10 largest Customers. Its customer includes, SKF India, Timken India, Schaeffler India, NRB, NEI that accounts for 81% of the Indian bearing market. Company supply internationally and domestically and have 3 manufacturing plant in Rajkot having 22 forging lines with combined installed capacity of 1,44,750 MTPA.

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                                                                            Issue Details
jects of the issue  

·          To meet working capital requirement.

·          To meet General corporate Purpose.

Issue Size Issue Size – Rs.731 Crore

Fresh Issue- Rs.56 Crore

Offer for Sale-Rs.675 Crore

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 880– Rs. 900
Bid Lot 16shares
Listing at  

BSE, NSE

Issue Opens: 28thJuly 2021 – 30thJuly 2021
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer

 

 

Check Rolex Rings Limited IPO Allotment Status

Rolex Rings Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To  Rolex Rings Limited IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as Rolex Rings Limited
  4. Enter your PAN Number or Application Id or DP Client Id.

 

Rolex Rings Limited IPO

Application Form

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Financial Performance:

Financial -Performance-rolex

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters 58.99% 57.64%
Public 41.01 42.36%
Source: RHP,,EWL Research,

Strengths:

  • Diverse product portfolio.
  • Strong Customer Relationships.
  • Focusing on ESG.

Key Highlights:

  • Revenue in FY21 Stood at Rs. 616 crore as compared to Rs.666 crore in FY20 witnessing the De-growth of 7% Y-o-Yand a negative CAGR growth of 17% from FY19 to FY21.
  • Revenue from exports was 56.27%,53.82%,56.12% in fiscal 2019,2020,2021 respectively.
  • Profit after tax stood at Rs.87 crore reported the growth of 64% Y-o-Y in FY21 growth, backed by the adjustment of deferred tax Asset.
  • In FY21,Net profit margin stood at 14% vs 8% in FY20.
  • CFO/PAT significantly reduced to 0.68 Times vs 3.47 in FY20 due to increased in Receivables and Inventories in FY21.
  • Debt/Equity ratio improving from 1.79 times to 0.70 times as of FY19 to FY21.

Risk Factors:

  • Top 10 customers accounted for 72.62% of revenue from operations out of which 5 customers are from India and 5 customers are from outside India any adverse changes in relationship could adversely impact revenue.
  • Company’s revenue comes from India, Europe, North America, Latin America any changes in affecting these markets can adversely affect operations.

Outlook:

Rolex Rings Limited(RRL) incorporated in 1988 manufacture bearings and auto components which constitute 58% and 42% of the revenue respectively in FY21. Company has recently received ‘Q1Preferred Quality Status’ award in May 2021 from Ford.The Indian bearing market is estimated at Rs. 12,000 crore and it constitutes less than 4% of the global bearing demand. In terms of consumption, about 60% requirement is met through domestic production while the remaining is met through imports.RRL Topline shows declining trends but as demand of auto ancillary has gone up decent growth could be seen in future,although despite being ramp up in steel prices company has well placed to control it’s cost and reduce it’s debt significantly over 3 year period. The Government’s ‘Make in India’ program’ and RRL step towards renewable energy to reduce the carbon foot printwill also augurs well for the company.MM forgings, Bharat forge, Ramakrishna forgings are the peers of the company but they are not directly competitive.At the higher end of the price band of Rs. 900, the stock is offered at a PE multiple of 28.2x on FY21 Post issue EPS of Rs. 31.92 which is loweramong the peers.Thus,We would recommend Subscribe to this IPO considering the future prospect of the company.

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