Jain Resource Recycling IPO worth ₹1,250 cr to open on September 24

Jain Resource Recycling will raise Rs 1,250 crore via IPO opening Sept 24 with proceeds to repay debt, fund corporate purposes and expand into plastics and e-waste recycling

Jain Resource Recycling, one of the largest players in the non-ferrous metal recycling business in India, on Friday said it plans to diversify into recycling plastics, solar panels, automotive tyres, brass e-waste and copper aluminium radiator scrap.

 

The Chennai-based group, which is the largest recycler of lead, copper and aluminium scrap in the country, aims to raise Rs 1,250 crore through its maiden public issue that opens for subscription on September 24. The issue comprises a fresh offer of Rs 500 crore and an offer-for-sale (OFS) of Rs 750 crore. The price band has been fixed at Rs 220–232 per share.

 

The OFS includes up to Rs 715 crore by promoter Kamlesh Jain and up to Rs 35 crore by shareholder Mayank Pareek. Net proceeds from the fresh issue will be used for pre-payment or scheduled repayment of a portion of outstanding borrowings, estimated at Rs 375 crore, with the balance allocated for general corporate purposes.

 

Jain Metal Group is engaged in the recycling and production of non-ferrous metals in India, with the capability to handle multiple products at a single location and an extensive global sourcing network. 

 

“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 anchor investor bidding date is September 23, while the bid/offer will close on Friday, September 26. DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors and PL Capital Markets are the book-running lead managers to the issue.

 

For FY25, Jain Resource Recycling reported revenue of Rs 7,126 crore, up 61 per cent from Rs 4,428 crore in FY24. Net profit for the period rose 36 per cent to Rs 223 crore from Rs 164 crore a year earlier.

 

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.

 

“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.