About the Company:
Rolex Rings Ltd is one of the top five forging companies in India.
Company is a manufacturer and global supplier of hot rolled forged and machined bearing rings, and automotive components for segments of vehicles including two wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines and railways etc.
Company supplies domestically and internationally to large marquee customers including some of the leading bearing manufacturing companies, tier-I suppliers to global auto companies and some auto OEMs.
Company is one of the key manufacturers of bearing rings in India and cater to most of the leading bearing companies in India.
Company’s Product Porftolio:
Rolex Rings Ltd product portfolio includes a wide range of bearing rings, parts of gear box and automotive components, among others.
Company’s products suitable for a wide range of end-user industries such as automotive, railways, industrial infrastructure, renewable energy, among others.
Segment wise source of Revenue: (in millions)
Company’s Manufacturing Facilities:
Rolex Rings Ltd started manufacturing operations in 1988 with first manufacturing plant set up in Rajkot and currently company has three manufacturing units in Rajkot.
Company has 22 forging lines with a combined installed capacity of 1,44,750 MTPA, machining facilities consisting of 508 spindles with a combined installed capacity of 66 million parts per annum.
Company has unutilized land area of 32,071.44 square metres at Rajkot which can be utilized for any further expansion. In addition, Company also owns 691,312 square metres of land in Taluka Gondal (Gujarat).
Company’s Customers:
For Fiscal 2020, Rolex Rings supplied bearing rings and automotive components to over 60 customers in 17 countries, primarily located in India, United States of America and in European countries such as Germany, France, Italy, and Czech Republic, and Thailand.
Company has been able to maintain long standing relations with customers and 80% of the 10 largest customers for Fiscal 2020 have been with company for over a decade.
Company’s Investment in renewable energy.
Company operates windmills with installed capacity of 8.75 MW and are in the process of expanding capacity of company’s solar projects by an installed capacity of 12 MW and have already placed purchase orders for equipment with installed capacity of 7.35 MW.
Company believes that the proposed expansion will help company in reducing the carbon footprint and expanding the profit margins.
Top 5 Forging Companies in India and their Installed Capacity:
Management Team:
- Mr. Manesh Dayashankar Madeka (Designation: Chairman and Managing Director)
- Mr. Bhautik Dayashankar Madeka (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs. 56 cr)
- Funding long-term working capital requirements.
- General corporate purposes.
Offer for Sale: (Rs. 675 cr)
- The proceeds from the Offer for Sale shall be received by the Selling Shareholder and Company shall not receive any proceeds from the Offer for Sale.
Positives for the Company:
Company has comprehensive Product Portfolio.
- Company’s products suitable for a wide range of end-user industries such as automotive, railways, industrial infrastructure, renewable energy, among others. Company also offer auto components such as wheel hubs, shafts and spindles, gears, etc.
- Company’s product portfolio, has helped company, to become one of the leading forging manufacturers and suppliers of bearing rings and automotive components.
Among Top five forging companies in India.
- Rolex Rings Ltd is one of the top five forging companies in India. Company had started manufacturing of forging and forged products in 1988 have grown organically by setting up the second and third manufacturing plant.
- As on date company has three manufacturing units that are all in Rajkot with an annual achievable capacity of 144,750 MTPA in forging and 66 million parts per annum in machining and company is one of the key manufacturers of bearing rings in India.
Long standing customer relationships and geographically diversified revenue base.
- Company’s products find end use across automobile sector (including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines and railways, amongst other segments.
- Company supplies domestically and internationally to some of the leading manufacturers of bearings, Tier-I and Tier-II auto-component suppliers and certain auto OEMs.
- For Fiscal 2020, Company supplied bearing rings and automotive components to over 60 customers in 17 countries, primarily located in India, United States of America and in European countries such as Germany, France, Italy, and Czech Republic, and Thailand.
Expanding company’s customer base.
- Company intends to continue to leverage the products and long-term relationships and credentials with existing customers and referrals from such customers to further develop and strengthen company’s customer base.
- Company believes that there are certain geographies including Europe and India where company is under-penetrated on automotive components and will strive to improve the market share in such geographies.
- For instance, Company has recently entered into a multiyear long-term agreement with a leading Tier-I supplier (for supply of components to its plant at Europe) with an estimated annual value of approximately 10 million Euros.
Company has plans to reduce power costs and reduce the carbon footprint.
- Power and fuel expenses contributes one of the largest single expense for the Company and accounted for 8.14%, 7.91% and 8.47% of the corresponding total revenue from operations for the Fiscal 2020, 2019 and 2018, respectively.
- Currently, company depends on state electricity board for most of the power requirements and are subject to changes in power tariffs by state electricity board.
- Company currently operates windmills with installed capacity of 8.75 MW and are in the process of expanding capacity of company’s solar projects by an installed capacity of 12 MW and have already placed purchase orders for equipment with installed capacity of 7.35 MW.
- Company believes that the proposed expansion will help company in reducing the carbon footprint and expanding the profit margins.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 791.5 | 911.2 | 675.3 | 619.7 |
| Net Profit | 72.8 | 59.0 | 52.9 | 86.9 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Rolex Rings Ltd | 10 | 35.96 | 25.02 | 24.38% | 148.76 |
| Bharat Forge Ltd | 2 | 7.51 | 81.70 | 6.70% | 112.11 |
| Ramkrishna Forgings Ltd | 10 | 2.97 | 180.77 | 1.11% | 268.28 |
| Mm Forgings Ltd | 10 | 17.28 | 30.38 | 9.17% | 188.48 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 28th July 2021 |
| Issue Closes on:. | 30th July 2021 |
| Issue Price | Rs.880 – 900 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 16 Shares |
| Minimum Investment | Rs.14,400 |
| Issue Constitutes | 33.01% |
| Issue Size | Rs. 731 cr ($99 million) |
| Market Cap | Rs. 2215 cr ($ 300 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 6,22,222 |
| Equity Shares Offered (OFS) | 75,00,000 |
| Total Equity Shares Offered (Fresh + OFS) | 81,22,222 |
| Equity Shares Prior to the Issue | 2,39,81,090 |
| Equity Shares after the Issue | 2,46,03,312 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 4th August 2021 |
| Initiation of Refunds | On or Before 5th August 2021 |
| Credit of Equity Shares: | On or Before 6th August 2021 |
| Listing Date: | On or Before 9th August 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 16,24,444 | 0.00 | 0.23 | 143.58 |
| NII | 12,18,334 | 1.34 | 5.85 | 360.11 |
| Retail | 28,42,778 | 7.11 | 15.89 | 24.49 |
| Employee | ——- | —- | —– | —- |
| TOTAL | 56,85,556 | 3.84 | 9.26 | 130.44 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 35.96 | 25.02 | 24.38% | 148.76 |
| Check IPO Allotment Status: |
|---|
Link InTime : https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Rolex Rings Ltd Near Kotharia Railway Crossing, opposite Hotel Krishna Park, Gondal Road, Kotharia, Rajkot, Gujarat 360 004 Tel.: 0281 6699677/577; E-mail: compliance@rolexrings.com; Website: www.rolexrings.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 247 Park, L. B. S. Marg Vikhroli (West) Mumbai 400 083 Tel: +91 22 4918 6200 E-mail: rolex.ipo@linkintime.co.in Website: www.linkintime.co.in |
