Forging company Rolex Rings shares continued to witness strong demand from investors in the grey market as it traded at a healthy 50 percent premium over its final issue price ahead of listing next week.
On IPO Watch and IPO Central data, which tracks grey market premium of issues prior to the listing, the shares of the automotive components manufacturer were trading at a premium of Rs 450. This equates to a trading price of Rs 1,350, a premium of 50 percent over the issue price of Rs 900.
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Rolex Rings will debut on both BSE and NSE on August 9. It received a strong response to its IPO as it was subscribed 130.44 times during July 28-30. This is one of the reasons for the strong grey market premium.
"Rolex Rings IPO has received strong investors response and indicating premium listing according to the grey market premium. The mood of the primary market depends on the sentiment of the secondary market too. Indian markets inching to new highs is keeping the momentum in the primary market upbeat," said Likhita Chepa, Senior Research Analyst at CapitalVia Global Research.
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The company raised Rs 731 crore from its public offering that comprised a fresh issue of Rs 56 crore and an offer for sale of 675 crore by Rivendell PE LLC. The net proceeds from the fresh issue will be utilised for working capital requirements.
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