Rolex Rings lists with 39% gain over IPO

Mumbai: Rolex Rings made a strong debut on the bourses on Monday, listing at a nearly 39% premium to its issue price of ₹900 per share.

The stock listed at ₹1,250 on the BSE and touched a high of ₹1,264.95 before ending at ₹1,166.55.

The strong debut comes after the auto component maker's IPO, which closed on July 30, got subscribed 130.4 times. The quota for qualified institutional buyers was subscribed 143.6 times while the non-institutional investor category was subscribed 360.11 times.


The quota reserved for retail individual investors was subscribed 24.5 times.

Brokerages such as ICICIdirect, Reliance Securities and Ventura Securities had recommended subscribing to the issue but Choice Broking had assigned a ‘subscribe with caution rating.

“...Strong outlook for auto ancillary companies especially the forging companies with a visible pick-up in demand around the globe should aid RRL to record healthy growth in the ensuing years. Further, the possibility of further improvement in the balance sheet, industry-leading return ratio and healthy clientele base augur well for the company,” said Reliance Securities in a pre-IPO note.

Choice Broking had assigned a subscribe with caution due to the higher valuation that the company was demanding at the IPO price.

“The overall outlook for bearing rings and auto components industries remains positive. However, despite its presence in the lucrative industrials segment, the higher demanded valuation is a concern for investors,” said Choice Broking in its pre-IPO note.