Rolex Rings made a fantastic debut today morning. As against the IPO price of Rs.900, it got listed on the BSE at Rs.1249, an almost 40% premium. Profit booking at listing levels pushed down the stock to Rs.1105 but it recovered from there and is now trading at Rs.1174 levels.
Given the overwhelming response it had received, subscribing 130.44 times, a grey market premium of 50% and an overall positive outlook for the bearing rings and auto components industry, led to this bumper listing.
HNIs were the biggest subscribers to this Rs.737 crore issue, seeing a subscription of 360.11 times, followed by QIBs at 143.58 times while retail investors were at 24.49 times.
In Our IPO Analysis, our verdict was that though there is a sectoral uptrend, the issue is richly priced - valuation of Rolex is very rich and seems to be making the best of current IPO boom. Such steep pricing without leaving any cushion for performance shortfall and without factoring in de-growth of the recent past makes it risky, despite healthy sector outlook.