Jain Resource Recycling IPO Opens September 24: Key Details, Financials, Strengths, Risks and IPO Structure

New Delhi, September 23, 2025: Jain Resource Recycling Limited is set to open its ₹1,250 crore Initial Public Offering (IPO) from September 24 to September 26, 2025. The IPO will have a fresh issue of shares aggregating ₹500 crore and an Offer for Sale (OFS) portion of ₹750 crore by promoters and existing shareholders. The price band has been set at ₹220 and ₹232 per share. Bids will be accepted by investors in lots of 64 shares, which at the top price band equals an investment of ₹14,848 for a lot of one. Jain Resource Recycling IPO will list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on October 1, 2025, with allotment closure on September 29, with refunds likely to be started by September 30.

Founded as Jain Metal Rolling Mills in 1953 and restructured over the decades, Jain Resource Recycling Limited has grown into a leading player in non-ferrous metal recycling. With over seven decades of experience, the company serves industries including automotive, renewable energy, electronics, and infrastructure, positioning itself as a key contributor to the circular economy.

Key IPO Details

Jain Resource Recycling is making a total issue size of ₹1,250 crore. The new issue of ₹500 crore will increase the company’s equity base and assist in repayment of part of the outstanding borrowings, while the OFS of ₹750 crore will enable partial exit for current stakeholders.

Promoter Kamlesh Jain will offload shares aggregating around ₹715 crore under OFS, while shareholder Mayank Pareek will offload approximately ₹35 crore worth of shares. The face value per equity share is ₹2. The lot size is at a constant 64 shares, and orders can be placed in multiples thereof. The registrar of the issue is KFin Technologies Limited.

Financials and Growth

Between FY23 to FY25, Jain Resource Recycling has registered good growth in revenue as well as profitability. Its revenue increased from approximately ₹3,107.5 crore in FY23 to around ₹7,162.2 crore in FY25. Profit after tax rose from approximately ₹91.8 crore in FY23 to ₹223.3 crore in FY25. This growth was accompanied by net worth and assets’ expansion, although the company has heavy borrowings still retained on its balance sheet. Its ROCE was approximately 24.22 percent in FY25, a rise from 19.13 percent in FY24.

Strengths and Risks

Jain Resource Recycling’s core competence is its diversified recycling product range, consisting of lead, copper, aluminium, and its international sourcing network.

Its products, particularly lead ingots, are on the London Metal Exchange register, providing it with global credibility.

Logistics strengths emanate from its port proximity and effective vertical integration of the recycling stream. On the other hand, the company is extremely capital-intensive and reliance on imported scrap metals makes it vulnerable to currency exposure and supply chain volatility. Global metal price volatility, compliance expenses, and competition are envisaged as possible headwinds.

Outlook

With the price settled and IPO schedules announced, investor appetite is likely to move towards the QIB (Qualified Institutional Buyers) segment and retail participation owing to the company’s strong financials.

Having had the strong non-ferrous metal demand trends across the world and the regulatory thrust growing for recycling and sustainability, Jain Resource Recycling can do well if it manages to operate efficiently and maintain its cost structure.

REF: https://listing.bseindia.com/Download//PreAnchor/RHP_20250919175523.pdf

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