Auto-components maker Rolex Rings Ltd on Tuesday said it has collected a little over Rs 219 crore from anchor investors, ahead of its initial share sale, which will open for public subscription on Wednesday. The company has decided to allocate 24,36,666 equity shares to anchor investors at Rs 900 per share, taking the transaction size to Rs 219.29 crore, according to a circular uploaded on the BSE website.
HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF, Aditya Birla Sun Life MF, SBI MF, Kotak MF, L&T MF and HDFC Life Insurance Company are among the anchor investors. Rolex Rings’ IPO comprises a fresh issue of shares worth Rs 56 crore and an offer for sale of up to 75 lakh equity stocks by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC). The issue, with a price band at Rs 880-900 per share, will open on July 28 and conclude on July 30.
At the upper end of the price band, the IPO will fetch Rs 731 crore. 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 the equity shares on the stock exchanges, enhancement of its brand name among existing and potential customers, and the creation of a public market for its equity shares in India. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
The company said that bids can be made for a minimum of 16 equity shares and in multiples of 16 equity shares thereafter. Based in Rajkot, Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country. Equirus Capital Private Limited, IDBI Capital Markets & Securities Limited, and JM Financial Limited are the book running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE.