Jain Resource Recycling Files DRHP to Raise ₹2,000 Crore Via IPO

Jain Resource Recycling Ltd. has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise up to ₹2,000 crore through an Initial Public Offering (IPO). The IPO will consist of a fresh issue of ₹500 crore and an Offer for Sale (OFS) of ₹1,500 crore from existing shareholders. The face value of each share is ₹2, with 10% reserved for retail investors.

Kamlesh Jain, the company’s promoter, will offer ₹1,430 crore worth of shares, while Mayank Pareek will sell shares worth ₹70 crore.

Use of IPO Proceeds

The funds raised from the fresh issue will be primarily used to repay or prepay some of the company’s borrowings. Any remaining proceeds will be used for general corporate purposes, including strengthening operational capabilities and supporting growth initiatives.

IPO Management 

The IPO will be managed by DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors, and PL Capital Markets. KFin Technologies will act as the registrar. The company has a clientele that includes names such as Vedanta, Mitsubishi Corporation, and Nissan Trading Company.

Business and Products

Jain Resource Recycling is into recycling non-ferrous metal scrap, producing products like lead and lead alloy ingots, copper and copper ingots, aluminum and aluminum alloys, and refined gold. The company has a plan to expand its operations, particularly in gold refining, and diversify into heavy minerals.

Financial Overview

For the financial year 2023-24, Jain Resource Recycling reported a revenue of ₹4,485 crore and a profit after tax (PAT) of ₹163.8 crore. In FY23, the company earned ₹3,107 crore in revenue, with a PAT of ₹91.8 crore. For the six months ending September 30, 2024, Jain Resource Recycling achieved ₹2,909 crore in revenue and ₹112.2 crore in PAT. As of September 2024, the company’s net worth was ₹481.8 crore, with total borrowings amounting to ₹969.7 crore.

Conclusion

The Jain Resource Recycling IPO presents an opportunity to tap into the non-ferrous metal recycling sector, with the company focusing on debt reduction and expansion plans.

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