Rolex Rings Ltd. will launch its initial public offering on July 28 as an investor plans to sell part of its stake, and the forging and bearing company seeks to raise working capital till it comes out of debt restructuring.
Rolex Rings will sell shares at Rs 880-900 apiece to raise up to Rs 731 crore, looking for a market value of Rs 2,950 crore at the upper end of the price band, according to its red herring prospectus. The offer comprises a fresh issue worth Rs 56 crore and sale of shares worth Rs 675 crore by private equity firm Rivendell PE LLC.
Rivendell will hold nearly 12% in the company after the share sale. Promoters, who are not selling shares, will own 57.6% after the IPO. The rest will be held by the public.
Opens/Closes: July 28/30
Issue Size: Up to Rs 731 crore
Face Value: Rs 10 per share
Lot Size: 20 shares and multiples
Listing: BSE and NSE
Minimum Bid: 16 shares and multiples.
Bankers: Equirus, IDBI Capital, JM Financial
The offer comes after Rolex Rings issued optionally convertible redeemable preference shares at Rs 10 each through a rights issue to promoters in March, according to its IPO disclosures.
The company issued nine OCRPS for every 44 equity shares held by the shareholders. Rivendell did not participate in the rights issue. The OCRPS were converted to equity shares in 1:1 ratio on July 16. The promoters received 7.29% stake in the company for Rs 2.3 crore, weeks ahead of the IPO.
In an emailed statement to BloombergQuint, Rolex Rings clarified that the rights issue was offered to all shareholders. It has been disclosed in the offer documents as well, and the implied price-earnings multiple in the price band advertisement considers the dilution on account of shares issued on conversion of the OCRPS, it said.