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Rs 731-crore public offer comprises fresh issuance of equity Rivendell PE LLC. shares of Rs 56 crore, and an offer for sale of Rs 675

The Rs 731 crore initial public offer (IPO) of auto ancillary major Rolex Rings is set to hit the street on July 28. Here are nine things that you should know about the IPO.

Open and close date: The offer will open for subscription on July 28 and the bidding will close on July 30. The anchor book, if any, will open for a day before the issue opening, i.e. July 27.

Price band: The price band for the Gujarat based company has been fixed at Rs 880-900 per share.

Lot size: Investors can bid for a minimum of 16 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,400 at the higher end of the price band. A retail investor can at max apply for 13 lots or 208 shares for Rs 1,87,200.

Issue size: The Rs 731-crore public offer comprises fresh issuance of equity shares of Rs 56 crore, and an offer for sale of Rs 675 crore by Rivendell PE LLC.

Objective of issue: The forging company will utilise the net proceeds from fresh issue for funding long-term working capital requirements; and general corporate purposes.

What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.

About the company: Rolex Rings is among the top five forging companies in India. The company manufactures hot rolled forged & machine bearing rings and automotive components that are used across segments. The company supplies its products on both the domestic as well as international ground to automotive companies and leading bearing manufacturers such as SRF India, Schaeffler India, Timken India, etc.

The firm has 3 manufacturing plants in Rajkot with 22 forging lines with an aggregated installed capacity of 1,44,750 MTPA.

Financials: For the financial year ended March 31, 2021, the company reported revenue of Rs 616.33 crore compared to Rs 719.54 crore in FY18. Even its bottom line fell given the Covid induced lockdowns. The company reported a profit after tax of Rs 52.94 crore in FY21 versus Rs 72.87 crore profit posted in FY18.

Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are Equirus Capital, IDBI Capital, and JM Financial. The registrar to the issue is Link InTime.