Jain Resource Recycling sets price band for ₹1,250 crore IPO

Jain Resource Recycling has fixed a price band of ₹220-232 per share for its maiden public issue that opens for subscription on September 24. The company is raising ₹1,250 crore through the issue, which comprises a fresh issue of ₹500 crore and an offer-for-sale of ₹750 crore.

Investors can bid for a minimum of 64 equity shares and in multiples of 64 shares thereafter. Retail investors can invest a minimum amount of ₹14,848.

The public issue will close for bidding on September 26. The Jain Resource IPO share allotment will be finalised by September 29, while the trading in Euro Pratik Sales will commence on the bourses on October 1.

The company will use ₹375 crore of the fresh issue proceeds to repay loans. The remaining funds will be allocated for general corporate purposes to enhance the company's operational capabilities and support future growth initiatives.

The firm has taken unsecured loans at 12% from Promoter and Mayank Pareek worth ₹45.5 crore.

About company

Jain Resource Recycling was incorporated as a private limited company on February 25, 2022. The business was originally established in 1953 as a partnership firm under the name Jain Metal Rolling Mills and was reconstituted in 1993.

The company buys scrap metal - copper, lead, aluminium, and some precious metals with 23% from India and balance 77% is imported.

Metals are extracted, refined, and converted into usable forms like copper cathodes, lead ingots, aluminium products. Exports account for 60% of the revenue.

The company has three recycling facilities and one segregating facility in South India. Peers include Gravita and Pondy Oxides.

For the six months ended September 30, 2024, Jain Resource Recycling reported revenue of ₹2,888.6 crore and a profit after tax of ₹112,1 crore. As of the same date, the company's net worth stood at ₹481.8 crore with total borrowings amounting to ₹969.7 crore.

ICICI Securities, Motilal Oswal, and PL Capitl the book running lead manager, and Kfin Technologies is the registrar of the issue.