Rolex rings share price rolex rings gave investors a profit of 38%

Rolex Rings

Rolex Rings Listing: Amidst the boom in the IPO market, today the shares of Rolex Rings have got a good listing in the market. Its shares gave investors 39 percent profit on the very first day. Trading of Rolex Rings shares started today at Rs 1249 per share against an IPO price of Rs 900 per share. That is a profit of Rs 349 per share.

When the IPO of this automotive components manufacturer opened last month, it received an overwhelming response from investors. Its IPO was subscribed 130 times more. Under this IPO of Rs 731 crore, new equity shares worth Rs 56 crore have been issued while shares worth Rs 675 crore have been issued under Offer for Sale (OFS). At the time of listing, Rolex Rings had a market cap of Rs 3401 crore.

The IPO of the company was subscribed 130.44 times at a premium of 50% in the gray market before listing. After the tremendous subscription, the eyes of the market were on the listing of Rolex Rings. The price band of this IPO was kept at Rs 880-900. Its shares had reached a premium of over Rs 450 in the gray market last week before the listing.

Considering the gray market premium of Rolex Rings, the possibility of it being listed at a premium was already visible. After the IPO, now the promoter's stake in the company has been reduced to 57.64 percent and the stake of retail investors has increased to 42.36 percent.

Increase in company's profit in

FY21 Rolex Rings, based in Rajkot, Gujarat, is the leading manufacturer of forged and machined components in the country. In the last financial year 2020-21, the company had a profit of Rs 86.95 crore, while in its last financial year 2019-20, the company had a profit of Rs 52.94 crore. However, its revenue declined.

Its revenue through operations declined from Rs 666 crore in the financial year 2019-20 to Rs 616.36 crore in the financial year 2020-21. The funds raised through new shares will be used by the company to meet its long-term working capital requirements and will also be used for general corporate purposes.