Jain Resource Recycling IPO Day 2: Issue subscribed 1.24x so far. Check GMP, subscription status, review. Apply or not?

The initial public offering (IPO) for Jain Resource Recycling, a segment of the Jain Metal Group, will began subscription on September 24 and conclude on September 26. Jain Resource Recycling IPO price band has been set at ₹220-232, with a minimum lot size of 64 shares. On September 23, the scrap recycling firm secured ₹562.5 crore from 40 global and domestic institutional investors through the anchor book.

Jain Resource Recycling mainly specializes in producing non-ferrous metal goods by recycling non-ferrous metal scrap. Its product range includes lead and lead alloy ingots, copper and copper ingots, as well as aluminium and aluminium alloys.

The company has collaborated with Ikon Square Ltd in the UAE to establish a gold refining plant in Sharjah. Additionally, it is involved in trading non-ferrous metals and various other commodities.

As stated by the company, 75 percent of the offer size is allocated for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors.

Jain Resource Recycling IPO GMP today

Jain Resource Recycling IPO GMP today or grey market premium is ₹20. This indicates Jain Resource Recycling share price were trading at a premium of ₹20 in the grey market on Wednesday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Jain Resource Recycling share price was indicated at ₹252 apiece, which is 8.62% higher than the IPO price of ₹232.

According to the grey market activities observed over the past seven sessions, today's IPO GMP is trending upward, indicating a promising listing. Experts report that the minimum GMP stands at ₹13.00, while the maximum reaches ₹30.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Jain Resource Recycling IPO subscription status

Jain Resource Recycling IPO subscription status was 1.24 times on day 2. The retail portion was subscribed 1.28 times, and NII portion has been booked 49%, Qualified Institutional Buyers (QIBs) portion received 1.61 times bids.

The company has received bids for 3,89,03,872 shares against 3,12,49,999 shares on offer, at 17:00 IST, according to data on BSE.

Jain Resource Recycling IPO Review

As per Anand Rathi Research, at the upper price point, the company carries a valuation of 35.9x FY25 P/E, which results in a projected market capitalization of ₹80,060 million post-issue. They are entering the production of copper cathode, wire rod, and busbars to strengthen their value chain and broaden their customer base.

Moreover, they are venturing into specialized recycling sectors—including solar panels, automotive tires, and copper-aluminium radiators—to capitalize on the increasing market demand and sustainability prospects. By utilizing their recycling skills, they intend to investigate new areas, expand internationally, and promote sustainable long-term growth. Based on this, the IPO seems fully valued and suggests a “SUBSCRIBE – LONG TERM” recommendation.

Jain Resource Recycling IPO details

The Jain Resource Recycling IPO includes a fresh equity share issue totaling ₹500 crore along with an Offer For Sale (OFS) worth ₹750 crore.

The OFS consists of shares valued at ₹715 crore being sold by promoter Kamlesh Jain and ₹35 crore by shareholder Mayank Pareek.

Funds raised from the fresh issue will be used to pay off debt and for general corporate purposes. The book-running lead managers for the issue are DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors, and PL Capital Markets.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.