Rolex Rings IPO
(i). Rolex Rings is one of the top five forging companies in India and a manufacturer and global supplier of hot rolled forged and machined bearing rings, and automotive components for segments of vehicles including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines, and railways, amongst other segments.
(ii). Their product portfolio includes a wide range of bearing rings, parts of gearbox, and automotive components, among others. Its manufacturing capabilities are complemented by its tool design, engineering, and product development capabilities.
(iii). To date, it has offered a diverse range of hot forged and machined alloy steel bearing rings weighing from 0.01 kilograms to over 163 kilograms, and with an inner diameter of 25 millimeters to the outer diameter of 900 millimeters. This makes their products suitable for a wide range of end-user industries such as automotive, railways, industrial infrastructure, renewable energy, among others.
(iv). For Fiscal 2020, it supplied bearing rings and automotive components to over 60 customers in 17 countries, primarily located in India, the United States of America, and in European countries such as Germany, France, Italy, and the Czech Republic, and Thailand.
(v). The company is in the process of expanding the capacity of its solar projects by an installed capacity of 12 MW and has already placed purchase orders for equipment with an installed capacity of 7.35 MW.
i. Comprehensive product portfolio
ii. Long-standing customer relationships
iii. Experienced Promoters and management
iv. Strong financial performance
Objects of the Rolex Rings IPO:
Rolex Rings IPO Details:
|Open Date:||Jul 28 2021|
|Close Date:||Jul 30 2021|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||700 Cr.|
|Lot Size:||15 Shares|
|Issue Price:||₹ 960 - 970 Per Equity Share|
|Listing Date:||Aug 09 2021|
Promoters And Management:
Financials of Rolex Rings IPO:
|Particulars (in Cr.)||6M FY21||Mar-20||Mar-19||Mar-18|
|Cost of Material Consumed||111.85||313.74||452.94||371.63|
|Change in Inventories||-5.19||15.59||-19.01||-7.33|
|Excise Duty on Sale of Goods||0.00||0.00||0.00||14.16|
|Employee Benefits Expense||24.41||52.66||60.81||54.56|
|Profit before tax||14.56||72.08||140.56||94.06|
|Total Tax Exps||-10.75||19.14||81.52||21.18|
|No. of shares||2.40||2.40||2.40||2.40|
|EPS in Rs||10.56||22.08||24.62||30.39|
Comparison With Peers:
|Name of the company||3-year Revenue Growth||3 year PAT Growth||EBITDA Margin (FY20)||ROE (FY20)||Debt to Equity||P/E||3 Years Return|
|Rolex Rings Ltd||-5%||-10%||18%||19.75%||0.88||-||-|
|Bharat Forge Ltd||-15%||-23%||13%||1.46%||0.90||480.40||9.78%|
|Ramkrishna Forgings Ltd||-13%||-44%||17%||2.35%||1.29||119.21||8.81%|
|Mm Forgings Ltd||-7%||-17%||17%||9.62%||1.06||37.91||5.07%|
Recommendation on Rolex Rings IPO:
To be updated soon