Top
Begin typing your search...

Rolex Rings gets Sebi nod to launch IPO

Companie’s IPO comprises fresh issue of shares worth Rs 70 crore and an offer for sale of up to 65L equity stocks by Rivendell PE LLC

Rolex Rings gets Sebi nod to launch IPO
X

Rolex Rings gets Sebi nod to launch IPO

  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print

New Delhi Auto components maker Rolex Rings has received capital markets regulator Sebi's approval to float an initial public offer (IPO).

Rolex Rings' IPO comprises 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), according to draft red herring prospectus (DRHP). Currently, Rivendell holds 45.51 per cent stake in Rolex Rings. The auto component maker, which filed its preliminary papers for IPO with the regulator in March, obtained its observation on May 28, an update with Securities and Exchange Board of India (Sebi) showed on Tuesday.

Sebi's observation is necessary for any company to launch public issues like IPO, follow on public offer (FPO) and rights issue. Proceeds from the fresh issue would be used towards funding long-term working capital requirements as well as general corporate purposes. In addition, the auto component maker expects to receive the benefits of listing of the equity shares on the stock exchanges, enhancement of its brand name amongst existing and potential customers and creation of a public market for its equity shares in India.

Based at Rajkot in Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country. For the six months ended September 2020, the company posted a profit of Rs 25.31 crore and its revenue from operations stood at Rs 224.52 crore. For the fiscal year ended March 31, 2020, Rolex Rings reported a profit of Rs 52.94 crore as compared to Rs 59.04 crore in the preceding fiscal.

Its revenues from operations was at Rs 666 crore in fiscal year ended March 31,2020 as against 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 per the draft papers. Equirus Capital Private Limited, IDBI Capital Markets and Securities Limited, JM Financial Limited are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Bizz Buzz
Next Story
Share it