Jain Resource Recycling's Initial Public Offering (IPO) has shown promising momentum, achieving a 78% subscription rate by the end of its second day. The company, which specializes in recycling non-ferrous metals, has set out to raise Rs 1,250 crore through this public offering.

Subscription Details

The IPO's performance across different investor categories as of day two:

Offering Structure

• Total Fundraising Goal: Rs 1,250 crore
• Fresh Issue: Rs 500 crore
• Offer-for-Sale: Rs 750 crore

Key IPO Information

• Price Band: Rs 220 - Rs 232 per share
• Minimum Retail Investment: Rs 14,848 for 64 shares
• Closing Date: September 26
• Allotment Date: September 29
• Listing Date: October 1

Company Profile

Jain Resource Recycling is engaged in the recycling of non-ferrous metals, with a focus on producing lead alloy and copper ingots.

Use of Proceeds

The company plans to utilize the funds raised from the fresh issue for:

1. Debt repayment
2. General corporate purposes

Market Sentiment

The grey market premium currently stands at Rs 20, suggesting an estimated listing price of Rs 252. This indicates positive market sentiment towards the IPO.

Investors and market watchers will be closely monitoring the subscription levels as the IPO enters its final day. The allotment process is set to take place on September 29, followed by the listing on major stock exchanges on October 1.

As always, potential investors are advised to carefully review the company's prospectus and consider their financial goals before making any investment decisions.

Jain Resource Recycling, a key player in the non-ferrous metal recycling industry and part of the Jain Metal Group, has opened its Initial Public Offering (IPO) for subscription. The company aims to raise ₹1,250 crore through this public issue, which will remain open from September 24 to September 26.

IPO Details

• Price Band: ₹220 - ₹232 per share
• Lot Size: 64 shares
• IPO Structure:
  • Fresh issue of ₹500 crore
  • Offer-for-sale of ₹750 crore

Strong Anchor Investment

Prior to the public subscription, Jain Resource Recycling successfully raised ₹562.50 crore from 40 institutional investors through anchor booking. Notable participants include:

• Goldman Sachs
• Abu Dhabi Investment Authority
• BNP Paribas

This strong anchor investment demonstrates significant institutional interest in the company.

Shareholding and Fund Utilization

Post-IPO, the promoter stake in the company is expected to decrease from 88% to 73.6%. The company plans to utilize ₹375 crore from the fresh issue proceeds to repay debt, which currently stands at ₹920 crore.

Business Overview

Jain Resource Recycling specializes in non-ferrous metal recycling, focusing on:

• Copper
• Lead
• Aluminium scrap

The company operates three facilities in Chennai and sources materials from 120 countries, highlighting its global reach in the recycling industry.

Financial Performance

The company has shown impressive financial growth:

This substantial increase in revenue and profitability underscores the company's strong market position and operational efficiency.

Analyst Recommendation

Anand Rathi, a financial services firm, has given a 'subscribe - long term' rating for the IPO. The recommendation highlights the company's expansion plans into copper cathode production and niche recycling segments as potential growth drivers.

Listing Details

Investors can expect the listing of Jain Resource Recycling shares on October 1 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The IPO presents an opportunity for investors to participate in the growth of a company operating in the crucial sector of metal recycling, which is increasingly important in the context of sustainability and resource conservation.