New Delhi: The car components manufacturer, Rolex Rings, has approved the capital market regulator, Sebi, to drive an initial public offering (IPO). The issuance of Rolex Rings consists of a new issue of shares worth 70 million and an offer to sell up to 65 lakh shares by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC), according to the draft red herring prospectus (DRHP).
Currently, Rivendell owns 45.51 percent in Rolex Rings. The auto components manufacturer, which submitted its preliminary documents for the exchange trading to the regulator in March, received its observation on May 28, an update to the Securities and Exchange Board of India (Sebi) showed on Tuesday. Sebi’s observation is necessary for any company to launch public issues such as IPO, and follow up on public offering (FPO) and rights issue.
The proceeds of the new issue would be used to finance long-term working capital requirements as well as general corporate purposes. In addition, the auto parts manufacturer expects to reap the benefits of listing shares on the stock exchanges, improving its brand name among existing and potential customers and creating a public market for its shares in India.
Rolex Rings, based in Rajkot in Gujarat, is one of the leading manufacturers of counterfeit and machined components in the country. For the six months ended September 2020, the company achieved a profit of 25.31 million and its operating income amounted to 224.52 million.
For the financial year ended 31 March 2020, Rolex Rings had a profit of 52.94 million R compared to 59.04 million in the previous fiscal year. Revenue from operations was 666 million in the financial year ended 31 March 2020 compared to 904.32 million in the previous financial year.
‘The continuing impact of the outbreak of the COVID-19 can have a significant impact on our operations, and can negatively impact our business, revenue, financial condition, cash flow and operating results, ”according to the draft documents. Equirus Capital Private Limited, IDBI Capital Markets and Securities Limited, JM Financial Limited are the general managers of the issue. The shares of the company are listed on the BSE and NSE.
Source: Telangana Today