Shares of auto components maker Rolex Rings Ltd on Monday listed on the bourses with a premium of nearly 39 per cent against the issue price of Rs 900.
The stock listed at Rs 1,249, registering a jump of 38.77 per cent from its issue price on the BSE. It later zoomed 40.55 per cent to Rs 1,264.95.
At the NSE, it made its debut at Rs 1,250, reflecting a jump of 38.88 per cent.
The company's market valuation was at Rs 3,090.98 crore on the BSE.
Mirroring massive investor response, Rolex Rings initial public offer was subscribed 130.44 times last month.
The Rs 731-crore offer was in a price range of Rs 880-900 a share.
Based in Rajkot, Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country.
Saurabh Joshi Research Analyst at Marwadi Shares and Finance Limited, said, "We have given a subscribe (with caution) rating to Rolex Rings IPO and the listing was in line with our expectations. We have recommended investors to book profit on listing as client concentration risk and CDR debt restructuring in the past keeps us cautious from a longer-term perspective. Long term investors are advised to avoid entering the stock at any correction due to the greater risk associated with the investment. The company listed at P/E of 38.90 which when compared with MM Forgings (P/E 38.02) and Ramkrishna Forgings (P/E 39.77) caps the upside potential of the stock in the short-term as well."
