Buyback Alert: Auto parts maker, up 40% this month, approves proposal at modest premium

Shares of Rolex Rings Ltd. are in focus on Friday, April 24, after the company's board approved the buyback of shares for up to ₹180 crore.

The buyback price has been set at ₹180 per share, payable in cash, for the purchase of 1 crore fully paid-up equity shares of the company of face value ₹1 each, representing up to 3.67% of the total number of equity shares in the existing total paid-up equity share capital of the firm.

Price of the buyback is at a premium of 14% to Thursday's closing price. The stock has already rallied 40% in the month of April so far.

The record date for the share buyback is yet to be announced.

Promoter group of Rolex Rings has indicated their intention to not participate in the proposed buyback, the company informed the stock exchanges on Thursday.

Earlier this week, the company had informed the exchanges that the board of directors were set to meet on Thursday, April 23, to consider the buyback proposal of fully paid-up equity shares of the firm.

This is the first ever share buyback in Rolex Rings' history. Apart from this, the company has only carried out one corporate action — a stock split in October last year. The company had split one share with a face value of ₹10 into 10 shares carrying a face value of ₹1 each. It hasn't issued bonus shares or dividends to its shareholders ever.

At the end of the fourth quarter, the company's promoters held 52.2% stake in it. Among public shareholders, mutual funds held 28.7% stake, while more than 71,000 retail investors, or those with authorized share capital of up to ₹2 lakh, held an 8.8% stake in the firm, as per data available on the exchanges.

Shares of Rolex Rings shares ended the previous session 2.1% up at ₹157 apiece. With this rally in April, the stock has reversed its losses for 2026 and is now trading 22% higher on a year-to-date basis.

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