Jain Resource Recycling IPO Day 3: Check latest GMP, subscription status - apply or not?

Jain Resource Recycling IPO: The initial public offer (IPO) of Jain Resource Recycling opened on September 42 and will close for subscription today, September 26.

The ₹1,250 crore IPO, had fixed a price band in the range of ₹220-232 apiece.

Jain Resource Recycling IPO Subscription

By the end of Day 3, the issue was subscribed 16.76 times. It received bids for 49.67 crore shares as against 2.96 crore on offer. The retail portion was subscribed 3.81 times while the non-institutional investors (NII) category was bid 5.59 times and the qualified institutional buyers (QIBs) quota was booked 26.67 times.

Jain Resource Recycling IPO GMP

Jain Resource Recycling IPO is witnessing muted interest in the grey market, with a grey market premium (GMP) has fallen to ₹3.5 from ₹17 earlier. This suggests that the shares are still trading above the issue price but not by much. At the current premium, the stock is expected to list near ₹235.5, which would be about 1.51 percent higher than the upper end of the price band set at ₹232.

About Jain Resource Recycling IPO

Jain Resource Recycling has launched an initial public offering (IPO) comprising a fresh issue of 2.16 crore shares worth ₹500 crore, along with an offer for sale (OFS) of 3.23 crore shares aggregating ₹750 crore.

Retail investors can apply for a minimum of 64 shares, which translates to an investment of ₹14,848 at the upper price band. The allotment process is expected to conclude on Monday, September 29, with shares scheduled to list on both the NSE and BSE on Wednesday, October 1.

Dam Capital Advisors Ltd. is serving as the book-running lead manager, while Kfin Technologies Ltd. is the registrar for the issue. Prior to the public subscription, the scrap recycling company raised ₹562.5 crore on September 23 from 40 global and domestic institutional investors through the anchor book.

Proceeds from the fresh issue, totaling ₹500 crore, are intended for prepayment or scheduled repayment of certain outstanding borrowings, as well as for general corporate purposes.

In this IPO, at least 75 percent of the offer is reserved for qualified institutional buyers (QIBs), up to 10 percent for retail investors, and a maximum of 15 percent for non-institutional investors (NIIs).

Jain Resource Recycling focuses on producing non-ferrous metal products by recycling scrap. Its offerings include lead and lead alloy ingots, copper and copper ingots, and aluminium and aluminium alloys. The company has partnered with Ikon Square Ltd in the UAE to set up a gold refining facility in Sharjah. In addition to production, it engages in trading non-ferrous metals and other commodities.

Among its listed peers are Gravita India and Pondy Oxides and Chemicals, which currently trade at price-to-earnings ratios of 27.67 times and 55.24 times, respectively.

Jain Resource Recycling IPO: Apply or not?

SBI Securities has given the Jain Resource IPO a “Subscribe for long-term” rating, highlighting the company’s leadership in India’s non-ferrous metal recycling and production sector. The firm noted that Jain Resource is one of only two recycling companies in the country to have its lead ingot registered as a brand by the London Metal Exchange (LME). Despite the fragmented industry, the company maintains a strong market presence with an 8.6 percent share in lead and 3.4 percent in copper.

Based on post-issue capital, the company is valued at a FY25 PE of 35.7 times and an EV/EBITDA of 22.2 times. SBI Securities recommends investors subscribe to the IPO at the cut-off price for long-term gains.

Ventura Securities also rated the IPO as “Subscribe,” citing Jain Resource’s plans to expand its copper and aluminium recycling operations, increase precious metals refining capacity, and tap into opportunities from the EV and renewable energy sectors. The company reported a 61 percent year-on-year revenue growth, driven by rising domestic and international demand and its foray into precious metals refining.

"It strengthened its global footprint through its UAE-based subsidiary, enhancing refining and trading, capabilities in the Middle East and African regions. With a strong leadership team, global supply chain reach, and a sustainability-driven business model, the company is well-positioned to emerge as a leading global player in the resource recycling industry," it said with a 'subscribe' tag.