Rolex Rings files IPO papers with SEBI

Rolex Rings Ltd, an auto-components maker has filed papers with markets regulator Securities and Exchange Board of India(SEBI) to float an initial share sale.

So far this year, 16 companies have filed draft papers for their respective initial public offers (IPOs) as these organizations are expecting to gain from an equity market that is flooded with liquidity and has witnessed a sharp rise in new retail investors.

Additionally, as many as 15 companies have already announced their initial share-sales so far in 2021.

Rolex Rings’ IPO includes a fresh issue of shares worth Rs 70 crore and an offer for sale of up to 65 lakh equity stocks by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC), as stated in the draft red herring prospectus (DRHP).

Presently, Rivendell holds a 45.51 percent stake in Rolex Rings.

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

Moreover, the auto component maker expects to reap the benefits of listing the equity shares on the stock exchanges, strengthening its brand name amongst existing and potential customers, and developing a public market for its equity shares in India.

Based at Rajkot in Gujarat, Rolex Rings is among the chief manufacturers of forged and machined components in the nation. For the six months ended September 2020, the company reported a profit of Rs 25.31 crore and its revenue from operations was at Rs 224.52 crore.

For the fiscal year ended March 31, 2020, Rolex Rings reported a profit of Rs 52.94 crore as against Rs 59.04 crore in the preceding financial year. Its revenues from operations stood at Rs 666 crore in the fiscal year ended March 31, 2020 as compared to Rs 904.32 crore in the last financial year.

“The continuing impact of the outbreak of the COVID-19 could have a significant effect on our operations, and could negatively impact our business, revenues, financial condition, cash flows and results of operation,” as stated in the draft papers.

Equirus Capital Private Ltd, IDBI Capital Markets & Securities Limited, JM Financial Limited have been appointed as merchant bankers for the issue. The equity shares of the company will be listed on the BSE and NSE.