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Rolex Rings IPO subscribed 12 times so far on final day. Here's what GMP is suggesting

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The Rolex Rings IPO was in high demand on the final day of bidding. The grey market premium for Rolex Rings shares was stable at around Rs 550, against Rs 430-450 a couple of days ago, say market participants. 

Rolex Rings IPO subscribed 12 times so far on final day. Here's what GMP is suggesting
Rolex Rings remained in high demand as its initial public offering (IPO) was subscribed nearly 12 times so far on Friday, the last day of the bidding process. In the grey market, which is an unofficial market for financial securities, the premium for Rolex Rings shares stood at Rs 550, according to market observers. This is 61 percent higher than the upper end of the issue price of Rs 900 for the IPO, which ends on the same day.
On Friday, the grey market premium for Rolex Rings shares was stable at around Rs 550, against Rs 430-450 a couple of days ago, according to market participants.
By 11:05 am, Rolex Rings' IPO was had received 6,76,94,048 bids against the total size of 56,85,556 shares, data from stock exchange NSE showed. That marked a subscription of 11.91 times.
"At the price of Rs 900, the asking PE comes to be at 24X. High sentiment in primary markets may emanate in listing gains but for the long term, it would be worthy to watch for the performance of the company in the future and take any decisions accordingly," said Abhay Doshi, founder of Unlisted Arena, a portal that tracks unlisted market trends.
The Rolex Rings IPO is a combination of fresh issuance of shares worth Rs 56 crore and an offer for sale (OFS) by Rivendell PE LLC of up to 75 lakh equity shares worth Rs 675 crore. Proceeds from the fresh issuance will be utilised towards funding long-term working capital requirements and for general corporate purposes. The company will not receive any proceeds from the OFS.
Investors will be able to bid for a minimum of 16 shares, estimated at Rs 14,400 at the upper end of the price band, and in multiples thereof.
Based in Rajkot, Gujarat, Rolex Rings is among the leading makers of forged and machine components in the country.