IPO Alert! Jain Resource Recycling files draft papers with Sebi; details

The company seeks to raise up to ₹2,000 crore from the public issue, which comprises both a fresh issue as well as an offer for sale of equity shares

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Upcoming IPO: Non-ferrous metal recycling company Jain Resource Recycling is moving closer to going public. The company has filed the Draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (Sebi), for its Initial Public Offering (IPO).  Jain Resource Recycling seeks to raise up to ₹2,000 crore from the public issue, which comprises both a fresh issue as well as an offer for sale of equity shares.

 

Here are the key details of Jain Resource Recycling IPO taken from its DRHP:

 

Jain Resource Recycling IPO details

The public offering comprises a fresh issue of equity shares aggregating up to ₹500 crore, and an offer for sale (OFS) with promoters and shareholders divesting shares worth up to ₹1,500 crore. The offer for sale comprises equity shares aggregating up to ₹1,430 crore by promoters Kamlesh Jain, and equity shares aggregating up to ₹70 crore by Mayank Pareek (Other selling shareholder), according to the DRHP.

 

Jain Resource Recycling, in its DRHP, said that, in consultation with the Book Running Lead Managers (BRLMs), it may consider a Pre-IPO placement aggregating up to ₹100 crore prior to filing of the Red Herring Prospectus. "The Pre-IPO placement, if undertaken, will be at a price to be decided by the company, in consultation with the BRLMs. If the pre-IPO placement is completed, the amount raised pursuant to the pre-IPO placement will be reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the SCRR."

 

The equity shares to be offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges, being BSE (Bombay Stock Exchange) and National Stock Exchange of India (NSE).

 

KFin Technologies is the registrar of the offering, while the Book Running Lead Managers include DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors, and PL Capital Markets.

 

Jain Resource Recycling proposes to utilise the net proceeds towards pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company and for general corporate purposes.  Also Read: Pace Digitek files DRHP with Sebi for ₹900 crore IPO; check key details

 

About Jain Resource Recycling

Jain Resource Recycling, a part of Jain Metal Group, is primarily focused on the manufacturing of non-ferrous metal products through the recycling of non-ferrous metal scrap. The company's product portfolio comprises (i) lead and lead alloy ingots; (ii) copper and copper ingots; and (iii) aluminium and aluminium alloys. The company is among the two recycling companies in India to get its lead ingot registered as a brand by the London Metal Exchange (Source: CRISIL), which provides the company a distinct advantage of access to a broader customer base.  

 

The company is also engaged in trading of non-ferrous metals and other commodities, which constitute 4.20 percent, 1.98 percent, 4.50 percent, and 1.30 percent of its revenue from operations for the six-month period ending September 30, 2024, Fiscal 2024, Fiscal 2023, and Fiscal 2022, respectively. 

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Jain Resource Recycling financial details

According to the DRHP, Jain Resource Recycling's net profit in the financial year 2024 (FY24) attributable to equity shareholders of the parent advanced 78 per cent to ₹163.8 crore from ₹91.8 crore reported in FY23. For the half-year ended on September 30, 2024, the company's net profit stood at ₹114.42 crore.

 

The company's revenue from operations jumped 44.53 per cent to ₹4,428.41 crore in FY24 from ₹3,064.07 crore reported in FY23. It stood at ₹2,888.62 crore for the half-year ended on September 30, 2024.

 

The company's total expenses climbed by 43 per cent to ₹4,270.23 crore in FY24, from ₹2,983.90 crore reported in FY23. It stood at ₹2,756.59 crore for the half-year ended on September 30, 2024.