Rolex Rings, one of the leading manufacturers of forged and machined components, informed investors through an exchange filing on Monday that its board of directors will meet on Thursday, September 4, to consider a proposal for the subdivision (stock split) of the face value of its equity shares, subject to approval by the company’s members.
If approved, this will mark the company’s first-ever stock split. Rolex Rings also announced that the trading window for dealing in its securities will remain closed from September 1, 2025, to September 4, 2025.
A stock split is a corporate action initiated by a company to improve the liquidity of its shares in the secondary market. It involves dividing existing shares into multiple shares, thereby reducing the face value of each share.
Investors holding the stock on the record date will receive the newly split shares in their demat accounts. Post-split, the stock price is adjusted proportionally based on the announced split ratio, while the company’s overall market capitalization remains unchanged.
In late August, SBI Mutual Fund and three other fund houses acquired a combined 3% stake in the company through bulk deals. According to Trendlyne data, 15 mutual funds collectively held a 30.80% stake in the company at the end of the June quarter.
Tariff-related concerns weigh on stock performance
The company’s shares have closed lower for two consecutive months, losing a cumulative 15.6% as weak momentum persists amid ongoing tariff-related concerns. The decline has also dragged the stock 50% below its record high of ₹2,794 apiece, hit in September 2024
Following the company’s June quarter results, domestic brokerage firm IDBI Capital maintained its ‘hold’ rating on the stock with a price target of ₹1,501 apiece.
The brokerage noted that Rolex Rings exhibited an improved performance in Q1FY26, but the slowdown in its main bearings segment has weighed on overall results. Export revenue from bearing rings and automotive components declined 21% and 15% YoY, respectively, due to lower offtake amid tariff-related uncertainties.
About 25% of the company’s revenue comes from the US, making it highly dependent on this geography. While management said there has been no immediate impact of the tariffs, since US-based customers have agreed to absorb the additional costs for now, the risk remains elevated.
Rolex Rings ships semi-finished products, with around 40% of each product made using US-sourced parts, enabling compliance with the United States-Mexico-Canada Agreement (USMCA).
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