Rolex Rings IPO: A Deep Analysis, Pros, And Cons To The Investors

Rolex Rings IPO: A Deep Analysis, Pros, And Cons To The Investors

The answer is initial public offerings which mean the first time the company issues shares for the public.


Rolex Rings IPO: A Deep Analysis, Pros, And Cons To The Investors

A super hit debut in the share market done by automobile spare parts company Rolex rings. The stocks of Rolex have been listed with a premium of more than 32 percent and the issue price of the share is Rs 900. The company launched its IPO; so, the first question is what is it? 

The answer is Initial Public Offerings which means the first time the company issues shares for the public. This kind of thing happens when a private company decides to become public. Before this happened, the company should have very limited stakeholders.

There is a limit to the retail investors who are willing to buy the IPO of the company. The amount is Rs.2 lakh. Looking at the type of IPO, basically, it has two types of IPO first is Fixed Price Offerings and the second is Book building offering.

For the first one in some companies, IPOs are set at a fixed price when their shares are first offered for sale, and the investors come to know what is the price decided by the company. And in the case of book building offering the company starts an offering with the 20 percent price band on the stocks which is offered to the investors. 

And before the final cited by the company investors’ bids and the investors need to specify the number of shares which they want to buy and their preferable amount of shares.

Before diving into the news of the share market let’s have a look at the company profile. Rolex ring is a Gujarat-based company headquarters at Rajkot. It is one of the top manufacturers of forged and machined components. It is the leading partner of big automobile companies. Rolex rings provide high world-class level customized automobile components and bearing rings in a large quantity. And it has operations across the globe. 


The Following Product Is Made By The Company:

  • Gear Blanks
  • Ring Type Gear
  • Lock Nut
  • Shafts
  • Sun and Pinion


Being one of the leading organizations it has been listed on the share market. And launched its IPO, which is an initial public offering. In the BSE the opening price of the stock was Rs.1200. The share market witnessed a huge investor response to the IPO. 

Rolex rings open its subscription on 28 July and the deadline was 30th July. And on the last day of the subscription, it was more than 130 times bidding. And finally, the price of the share was fixed at Rs.900. In the case of the Gray market, the shares are available at GMP which is a strong premium and the price is near about Rs.470.

The total amount of IPO is more than Rs.730 Crore. In the case of QIB which means qualified institutional buyers, the subscription amount is more than 142 times whereas the No institutional buyers have the subscription of 360.11 times. The subscription amount is lower in the case of retail individual investors which are a little bit higher than 24 times. 

Because of a fresh issue of up to near about Rs.56 crore and there is an offer for the sale of near about 74 lakh equity shares several companies have offered for this. Based on the current status of the company maximum brokerages had advised its clients to subscribe for the shares. 

The company has business abroad and earns revenue earnings from there, and investing can be beneficial to buyers. And the price of the shares is in a reasonable range so the buyer should focus on this, as said by the marker researchers and the brokerages.
 

Edited By Team CLIQTAX

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