Rolex Rings Limited Announces Buyback of Up To 10 Million Equity Shares at ₹180 Per Share

Rolex Rings Limited Announces Buyback of Up To 10 Million Equity Shares at ₹180 Per Share​

Rolex Rings Limited has announced a proposal to buy back up to ten million fully paid-up equity shares through a tender offer route. The Company determined the maximum offer size based on its financial parameters, setting the price at ₹180.00 per share for an aggregate consideration not exceeding ₹1,800.00 million.

The board of directors and shareholders approved the buyback via resolutions dated April 23, 2026, and May 31, 2026. The Company published a Public Announcement on June 03, 2026, with the tender offer commencing on June 04, 2026.

Key Details of the Buyback Offer​

The buyback initiative is intended to return surplus funds to its equity shareholders and enhance overall returns by achieving an optimal capital structure. The proposal aligns with the requirement that the maximum amount required does not exceed 25% of the aggregate of fully paid-up equity share capital and free reserves as recorded in audited financial statements as of March 31, 2025.

The company confirmed that it has not completed any buyback of its securities within a one-year period prior to the proposal. Furthermore, the Company affirmed that all equity shares are fully paid-up.

Shareholder Structure and Promoter Holdings​

The buyback is structured through a tender offer route and features a reservation for Small Shareholders in accordance with regulations, defined as shareholders whose shares market value on the Record Date is not more than ₹2,00,000.

As of the Board Meeting date (April 23, 2026), the Promoter Group held a total of 14,22,66,251 equity shares, representing 19.88% of the total paid-up equity share capital. Key members of the Promoter Group include Manesh Dayashankar Madeka (holding 2,59,89,150 shares at a 9.54% holding), Bhautik Dayashankar Madeka (holding 2,36,96,060 shares, 8.70%), and Mihir Rupeshkumar Madeka (holding 44,71,810 shares, 1.64%).

The company stated that the promoters and their group have expressed their intention not to participate in the buyback, meaning their holdings will be excluded from calculating the entitlement ratio for Eligible Shareholders under the tender offer route. The buyback is expected to result in a reduction of the equity share capital post-buyback.

Financial Rationale and Impact​

The board’s opinion included that immediately following the declaration of the Postal Ballot Resolution, the Company would have no grounds on which it could be found unable to pay its debts. Furthermore, the Board determined that the company's prospects for the subsequent year were sound, and the financial resources available would enable the Company to meet all liabilities as they fall due.

The buyback is expected to improve financial ratios such as earnings per share (EPS) and return on equity, by reducing the equity base of the company. Pre-split basic and diluted EPS prior to the board meeting was ₹763.89. Assuming full acceptance of the buyback, this figure is projected to increase to ₹6.63 per equity share on a standalone basis.

The Company confirmed that it will not utilize borrowed money from banks or financial institutions for the purpose of buying back its Equity Shares.

ROLEXRINGS Stock Price Movement​

Shares of Rolex Rings Limited are edging higher to ₹141.45 as of 11:34 AM today, rallying up 2.67% in live trading. The equity sees steady activity, with over 878,626 shares traded so far during the current session.