Jain Resource Recycling IPO: Price band set at ₹220-232 per share; check key dates, issue details, more

Jain Resource Recycling IPO price band has been fixed in the range of ₹220 to ₹232 per equity share of the face value of ₹2. Jain Resource Recycling IPO date of subscription begins on Wednesday, September 24 and closes on Friday, September 26. The allocation to anchor investors for the mainboard IPO is scheduled to take place on Tuesday, September 23.

The floor price and the cap price are 110 times and 116 times the face value of the equity shares, respectively. Jain Resource Recycling IPO lot size is 64 equity shares, and in multiples of 64 equity shares thereafter.

In Jain Resource Recycling IPO, not less than 75% of the shares are reserved for qualified institutional buyers (QIB), not more than 15% for non-institutional investors (NII), and not more than 10% of the offer is reserved for retail investors.

Tentatively, Jain Resource Recycling IPO basis of allotment of shares will be finalised on Monday, September 29, and the company will initiate refunds on Tuesday, September 30, while the shares will be credited to the demat account of allottees on the same day following the refund. Jain Resource Recycling share price is likely to be listed on the BSE and NSE on Wednesday, October 1.

Jain Resource Recycling IPO details

The company is seeking to raise ₹1,250 crore through this offering, which consists of a fresh issue of ₹500 crore alongside an offer-for-sale of ₹750 crore. Out of the proceeds from the fresh issue, ₹375 crore will be utilised to settle existing loans. The remaining funds will be directed towards general corporate purposes, aimed at improving the company's operational capabilities and fostering future growth initiatives.

The firm has secured unsecured loans at an interest rate of 12% from the Promoter and Mayank Pareek, totalling ₹45.5 crore.

ICICI Securities, Motilal Oswal, and PL Capital act as the book-running lead managers, while Kfin Technologies serves as the registrar for the issue.

Company details

Jain Resource Recycling was established as a private limited company on February 25, 2022. The business was first formed in 1953 as a partnership under the name Jain Metal Rolling Mills and underwent reconstitution in 1993.

The company purchases scrap metals, including copper, lead, aluminum, and a portion of precious metals, with 23% sourced from India and the remaining 77% imported.

These metals are extracted, refined, and transformed into usable products such as copper cathodes, lead ingots, and aluminum items. Exports contribute to 60% of the company's revenue.

Jain Resource Recycling operates three recycling facilities and one segregating facility in South India. Competitors in the industry include Gravita and Pondy Oxides.

For the six-month period ending September 30, 2024, Jain Resource Recycling reported revenues of ₹2,888.6 crore and a profit after tax of ₹112.1 crore. As of that date, the company's net worth was ₹481.8 crore, with total borrowings reaching ₹969.7 crore.

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