Jain Resource Recycling Announces ₹1,250 Crore IPO with ₹220-232 Price Band
Jain Resource Recycling, a metal recycling company, announces its IPO with a price band of ₹220-232 per share, aiming to raise ₹1,250 crore. The IPO includes a fresh issue of ₹500 crore and an offer-for-sale of ₹750 crore. The company plans to use ₹375 crore for loan repayment. With three recycling facilities and one segregating facility in South India, the company sources 77% of scrap metal through imports and exports 60% of its output. For the six months ended September 30, the company reported revenue of ₹2,888.60 crore and a profit after tax of ₹112.10 crore.
*this image is generated using AI for illustrative purposes only.
Jain Resource Recycling, a prominent player in the metal recycling industry, has set the stage for its Initial Public Offering (IPO) with a price band of ₹220-232 per share. The company aims to raise ₹1,250 crore through this public issue, which is scheduled to open for subscription on September 24 and close on September 26.
IPO Structure and Utilization of Funds
The IPO comprises a fresh issue of shares worth ₹500 crore and an offer-for-sale (OFS) component of ₹750 crore. From the fresh issue proceeds, the company plans to allocate:
- ₹375 crore towards repayment of loans
- The remaining funds for general corporate purposes
Company Overview and Operations
Jain Resource Recycling has established itself as a significant entity in the metal recycling sector. The company's operations involve processing various metals, including copper, lead, aluminum, and precious metals. Its business model is characterized by:
- Sourcing 23% of scrap metal domestically and importing the remaining 77%
- Exporting 60% of its output, indicating a strong international presence
- Operating three recycling facilities and one segregating facility, all located in South India
Financial Highlights
For the six months ended September 30, Jain Resource Recycling reported:
| Financial Metric | Amount (in ₹ crore) |
|---|---|
| Revenue | 2,888.60 |
| Profit After Tax | 112.10 |
| Net Worth | 481.80 |
| Total Borrowings | 969.70 |
These figures underscore the company's substantial operational scale and financial position in the metal recycling industry.
Industry Position and Growth Potential
The metal recycling sector plays a crucial role in sustainable resource management and circular economy initiatives. Jain Resource Recycling's significant export contribution and diverse metal processing capabilities position it well in this growing industry.
Investors and market observers will be closely watching this IPO, given the company's established presence in the metal recycling sector and its plans for debt reduction through the fresh issue proceeds. As always, potential investors are advised to carefully review the company's prospectus and consider their financial goals before making investment decisions.
18
