- Sets IPO Price Band at ₹220–₹232 per Share
- ₹1,250 Crore Issue Includes ₹500 Crore Fresh Equity and ₹750 Crore OFS
- Promoter Kamlesh Jain to Offload Shares Worth ₹715 Crore
- IPO Opens on September 24, Closes September 26
- Anchor bidding is on Tuesday, September 23
- Bids can be made for a minimum of 64 Equity Shares and multiples thereof
NE BUSINESS BUREAU
AHMEDABAD, SEPT 21
Tamil Nadu-based Jain Resource Recycling Ltd, one of the largest players in the non-ferrous metal recycling business in India, on Saturday announced a price band of ₹220 to ₹232per share for its upcoming ₹1,250 crore Initial Public Offering (IPO). At the upper end, the company is valued over ₹8,000 crore.
It plans to diversify into recycling plastics, solar panels, automotive tyres, brass e-waste and copper aluminium radiator scrap.
In its public announcement, the Tamil Nadu-based company said its maiden public offering will open for subscription on Wednesday, September 24 and conclude on Friday, September 26. The IPO comprises a fresh issue of equity shares aggregating to ₹500 crore and an Offer For Sale (OFS) valued at ₹750 crore.
Further, investors can bid for 64 shares in multiples thereof.
OFS details
The OFS comprises sale of shares worth ₹715 crore by promoter Kamlesh Jain and ₹35 crore by shareholder Mayank Pareek.
Proceeds to Fund Debt Repayment and Corporate Needs
The Company proposes to utilize the net proceeds from the fresh issue towards: (i) Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the Company estimated to be ₹375 Crore, and balance towards (ii) General corporate purposes.
Comments of senior management
“We are one of the largest recycling companies. We are targeting new areas of recycling like plastics, solar panels, automotive tyres, brass e-waste and copper aluminium radiator scrap,” said Kamlesh Jain, chairman and managing director of the company.
The company has a total production capacity of 308,306 MTPA at its recycling facilities. Around 77 per cent of its raw material is sourced overseas, with the remaining 23 per cent procured domestically.
Strong Global Sourcing Network Across 120 Countries
“Sourcing is the most vital part of our business and we currently do it from around 120 countries,” said Pareek, joint managing director. He added that 39 per cent of revenue is generated from India, with Singapore, China and the UAE among other top markets.
The company’s product portfolio comprises lead and lead alloy ingots; copper and copper ingots; and aluminium and aluminium alloys. The company partnered with Ikon Square Ltd UAE for the purposes of setting up its gold refining facility in Sharjah UAE. It is also engaged in the trading of non-ferrous metals and other commodities.
Share allocation
According to the company, 75 per cent of the offer size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
FY25 Revenue Jumps 61% to ₹7,126 Crore; Net Profit at ₹223 Crore
For FY25, Jain Resource Recycling reported revenue of ₹7,126 crore, up 61 per cent from ₹4,428 crore in FY24. Net profit for the period rose 36 per cent to ₹223 crore from ₹ 164 crore a year earlier.
Listing details
The Equity Shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
Book-running lead managers
DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors and PL Capital Markets are the book-running lead managers to the issue.
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