Rolex rings IPO alortment Status| How To Check Share Rolex IPO listing And Alortment Date And Time

Rolex rings IPO alortment Status

Hy readers so this is a new ipo of rolex ring with an application window between 20th to 30th july. so it is already open. And tomorrow is the last day of application i initially thought of giving it a miss as it is really getting difficult to analyze all the ipos and stocks as it requires a lot of time and energy but there were many requests for these ipos so i thought of quickly reviewing itall right we'll go through the business of the company. Its competitors key risk future growth and financials then i will quickly discuss the ipo details along with the valuation analysis finally. I will give my verdict on the ipo established in 1988 rolex ring is among the top five forging companies in indiaso basically it manufactures machine bearing and automotive components for bikes cars trucks industrial machine railway etc. Rolex swing is among the tier one. supplier to some of the top auto companies and auto oems company has three manufacturing facilities in large courtits products are sold to over 60customers in 17 countries of the world if you look at the promoters mr manish dayashankar is the chairman and managing director of rolex ring he has over 40 years of experience in the industry and has been engaged. With the company since its inception if you look at the listed competitors of rolex ring it include bharat for geramakrishna forging and mm poaching. If you look at the key risk rolex ringis involved in a capital.intensive business and the company has defaulted in payment in the past and have undergone corporate debt restructuring in fact the promoters had to pledge their sharesto avail the loan for the company so this isa big big red flag next key riskis revenue concentration risk its top 10customers contribute around 70in the business now that's a very high share and that too. Some of the customers belong to the same corporate house any fall in business from top customers would significantly impact its business. If you look at the global bearing market it is estimated to be around 50 billiondollar. China is the largest manufacturer accounting around 30 of global bearing manufacturing followed with japanindia accounts for less than fourpercent of global bearing marketin the future there will be growingdemand for automobile as well as machines for industrial railway and aerospace sector.Hence there will be good demand for beering sector. As per research report from ikra bearing industry is expected to grow at 10 to 11 percent cagr betweenf121to 25. if you look at the revenuethey have fallen from 911 crore and fi19 to 619 crore and fi 21.its profit fell down from 59 crore in 19to 52 crorethen jumped to 86 crore and fi 21. in fr20company's return on equity is 19.7percentso profitability is looking decent itsdebt to equity ratio is one which is again on the higher sideoverall the financials are very averagethe ip issue size is rupees 731 croreout of which there is a fresh equity of56 croreand remaining 675 crore is offered for sale where promoters are diluting their shareholding. so majority of money raised from the ipo would go in promoter's pocketthe remaining rupees 56 crore. Would be used for funding long-term working capital and general corporate expensesso there are no expansion plansat a price band of rupees 900 rolex ring would be valued at around 2200cr and the p ratio would be around 25 sothe valuation is looking decentcurrently the gray market premium rolexring is around 40 to 50 percentso there is a good gray market premiumand chances of good listing gain. Overall if we conclude rolex ring is inthe business of bearing manufacturing for automobile company and among the tier one supplier of major auto companies. The future growth prospects are lookingdecent with growing demand forautomobile in the future the financials are looking average and the valuation is looking decentat a pe of 25 although the key riskis that the company has defaulted in the past for loan payment and promoters have pledged their shares more over the company has high debt. levels as itis into capital intensive business now this is the big red flag for me. I am a long-term fundamental investor and i don't like companies with high debt levels i especially avoid companies with plus promoter share holding and any failure in loan payments. so i will give this ipo a miss for me the short-term profit doesn't matter only invest for long-term fundamentally strong companies. So if you are looking for short-term profit on ipo listing gain there's a good chance of listing gain due to the recent hype around ipos and high liquidity in the market andhence you can consider applying but if you're looking for long term investment. I would suggest being cautious with your hard earned money with this ipo so in this article we analyzed rolex ring ipo  hope you'll find this analysis useful.

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