Leveraging its recycling expertise, the company plans to diversify into new domains, expand internationally, and drive sustainable long-term growth. On this basis, Anand Rathi said the IPO appears fully priced and recommended a ‘subscribe – long term’ rating to the issue.
Jain Resource Recycling IPO: Price bandThe price band has been fixed at ₹220-232 per share, with a lot size of 64 shares.
Jain Resource Recycling IPO: Anchor book
On September 23, the scrap recycling company raised ₹562.5 crore from 40 global and domestic institutional investors via the anchor book.
Participants included marquee names such as Goldman Sachs, Abu Dhabi Investment Authority, Optimix Wholesale Global Emerging Markets Share Trust, BNP Paribas, Societe Generale, Citigroup Global, Nomura Singapore, and East Capital.
Jain Resource Recycling IPO: Structure
The IPO comprises a fresh issue of 2.16 crore shares aggregating to ₹500 crore and an offer-for-sale (OFS) of 3.23 crore shares aggregating to ₹750 crore.
The promoters will offload shares worth ₹715 crore, while Joint MD Mayank Pareek will sell shares worth ₹35 crore. Post-issue, the promoter stake will decline to 73.6% from 88%.
Jain Resource Recycling IPO: ObjectiveOf the fresh issue proceeds, ₹375 crore will be used to repay debt, with the balance earmarked for general corporate purposes.
As of FY25, the company’s total borrowings stood at ₹920 crore, including unsecured loans of ₹45.5 crore at 12% interest from the promoter and Mayank Pareek.
Company background
Jain Resource Recycling is a leading player in India’s non-ferrous metal recycling industry, specialising in sustainable processing of copper, lead, and aluminium scrap.
It operates three facilities at the SIPCOT Industrial Estate in Gummidipoondi, Chennai, sourcing raw material from 120 countries and serving industries such as automotive, electronics, and lead-acid batteries.
Peers include Gravita India and Pondy Oxides.
Financials
The company’s revenue more than doubled to ₹7,125.7 crore in FY25 from ₹3,064 crore in FY23, while net profit rose to ₹223.2 crore from ₹91.8 crore. EBITDA margin improved to 5.2% in FY25 from 4.1% in FY23. However, return on equity fell to 40.8% from 59.9% due to a rise in total equity.
Book running lead managers
DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors, and PL Capital Markets are the merchant bankers to the issue, while Kfin Technologies is the registrar.
The IPO allotment is likely to be finalised on September 29, with tentative listing on the BSE and NSE scheduled for October 1.
