Rolex Rings

IPO Size

`731 Cr

Price Band

`880-900 Per Share

Minimum Lot Size

16 Share

Face Value

`10 Per Share

Employee Discount


Retail Allocation


Issue Open Date

28 July, 21

Issue Close Date

30 July, 21

Listing Date

09 Aug, 2021

About the Company:

Rolex Rings is one of the top five forging companies in India in terms of installed capacity, a manufacturer and global supplier of hot rolled forged and machined bearing rings. The company manufactures automotive components for all segments of vehicles including two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles, industrial machinery, wind turbines and railways. The company supply 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. Rolex Rings is one of the key manufacturers of bearing rings in India and caters to most of the leading bearing companies in India.

The company started its manufacturing operations in 1988 and its product portfolio includes a wide range of bearing rings, parts of gear box and automotive components, among others. The company supplies 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. They have maintained long standing relations with customers and 70% of their 10 largest customers have been with them for over a decade.


Outstanding Litigation:

S.No. 1 - Company 2 - Promoters 3 - Directors
Entity Name By the Company Against the Company By the Promoters Against the Promoters By the Directors Against the Directors
Criminal cases - - - - - -
Material civil cases - - - - - -
Taxation matters - 11 - 10 - 5
Regulatory Procedings - - - - - -
Amt. (In Million Rs.) - 148.91 - Not Quantifiable - Not Quantifiable


Financial Statements:

Income Statement (In Millions)   FY21 FY20 FY19
Gross Operating Income 6197.57 6753.32 9112.54
Cost of Employee & Inventory 3392.98 3819.92 4947.36
Other Expenses 1681.64 1625.64 2084.99
EBITDA 1122.95 1307.76 2080.19
Depreciation 254.09 265.24 254.40
Interest  116.99 321.69 420.19
Profit Before Tax 751.87 720.83 1405.60
 Tax -117.7 191.42 815.19
Profit After Tax   869.57 529.41 590.41


On financials front, the revenues of the company have fallen by 18.5% in last two years. EBITDA margins of the company stood have fallen to 18.11% from 19.3% reported in FY20. The firm is continuously reducing their long-term borrowings, which has further reduced their interest obligations heavily. Current debt of the company stood at Rs. 32.34 cr. Debt/Equity ratio of the company is 0.7x. Company doesn’t have strong cash flows at Rs. 4.6 cr. and in order to operate smoothly it is raising funds to augment long-term working capital requirements. The firm has highest Return on Net Worth at 24.38%, highest among its listed peers. Considering the upper price band at Rs. 900 and FY21 Earning Per Share (EPS) of Rs. 36.26, the company is demanding a P/E multiple of 24.8x, much lower than the Industry P/E of 134x.

Promoter of the Company

The promoters of the company are Rupesh Dayashankar Madeka, Jiten Dayashankar Madeka, Manesh Dayashankar Madeka, Pinakin Dayashankar Madeka, and Bhautik Dayashankar Madeka.

Peer Comparison

The company will face tough competition from Bharat Forge, Ramkrishna Forgings and MM Forgings.

Objectives of the Issue

Offer for Sale

The object of the Offer for Sale is to allow PE investor Rivendell LLC to sell an aggregate of up to 7.5 million equity Shares held by them amounting at Rs. 675 cr.

Fresh Issue

The company has planned to raise fresh capital comprising an aggregate of 6,22,222 equity shares having Face Value ₹10 aggregating up to Rs. 56 Cr at the upper price band of Rs. 900. Out of the net proceeds, an amount of Rs. 45 cr. will be utilized for funding long-term working capital requirements while rest will be utilized for general corporate purpose.

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