Jain Resource Recycling Launches ₹1,250 Crore IPO with Strong Anchor Investment
Jain Resource Recycling, a non-ferrous metal recycling company, opens its IPO to raise ₹1,250 crore. The price band is set at ₹220-232 per share, with a lot size of 64 shares. The IPO includes a fresh issue of ₹500 crore and an offer-for-sale of ₹750 crore. The company raised ₹562.50 crore from anchor investors including Goldman Sachs and Abu Dhabi Investment Authority. Post-IPO, promoter stake will reduce from 88% to 73.6%. The company plans to use ₹375 crore to repay debt. Jain Resource Recycling specializes in recycling copper, lead, and aluminium scrap, operating three facilities in Chennai. The company's revenue increased from ₹3,064 crore in FY23 to ₹7,125.70 crore in FY25, with net profit rising from ₹91.80 crore to ₹223.20 crore. Anand Rathi has given a 'subscribe - long term' rating for the IPO. Listing is expected on October 1 on BSE and NSE.
*this image is generated using AI for illustrative purposes only.
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:
| Metric | FY23 | FY25 |
|---|---|---|
| Revenue | 3064.00 | 7125.70 |
| Net Profit | 91.80 | 223.20 |
| EBITDA Margin | 4.10% | 5.20% |
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.
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