Kaushlendra Singh Sengar, Founder & CEO, INVEST19 expects Rolex Rings to list at around 50 per cent premium on Monday, considering the “inexpensive valuation” demanded by the company in the IPO.
“One of the top forgings manufacturers of India is not lucrative on the path of financials. Revenues are falling and the company does not have strong cash flows,” he added. “However, the company is reducing its long-term borrowings to support the bottomline.”
The primary offer of Rolex Rings was open during July 28-30. The issue saw a strong demand from investors and was subscribed more than 130 times, thanks to high demand from HNIs and institutional investors during the three-day process.
The Rs 731 crore issue consisted of issuance of fresh equity shares worth Rs 56 crore with a face value of Rs 10 each, while existing shareholders and promoters offloaded stake worth Rs 675 crore.
However, after a tepid listing of Glenmark Life Sciences on Friday, analysts are suggesting investors to trim down their expectations on listing day.
Abhay Doshi, co-founder, UnlistedArena.com said that Glenmark Life’s less than expected listing may affect sentiment for Rolex Rings as well. It is time to be cautious in the primary market considering the flood of issues.
“Most of the action will be seen in the upcoming issues, while the euphoria for recently-concluded issues has cooled down,” said Doshi. “The primary market buzz has turned the grey market lively.”