Jain Resource Recycling Ltd is launching its Initial Public Offering (IPO) to raise capital primarily for pre-payment or scheduled repayment of a portion of the company’s outstanding borrowings. The IPO comprises a fresh issue of 2.61 crore shares worth Rs. 500 crore and an offer for sale of 3.23 crore shares worth Rs. 750 crore, bringing the total issue size to Rs. 1,250 crore.
The Jain Resource Recycling Ltd IPO opens on September 24, 2025, and closes on September 26, 2025, with shares set to be listed on NSE and BSE on Friday October 1, 2025. Here’s a complete overview of the issue.
Jain Resource Recycling Ltd’s IPO is priced between Rs. 220 and Rs. 232 per share with a lot size of 64 shares. Retail investment is Rs. 14,848 (64 shares at the upper price). For S-HNI, the investment is 14 lots (896 shares) totaling Rs. 2,07,872, and for B-HNI, a minimum of 68 lots (4,352 shares) totaling Rs. 10,09,664.
GMP of Jain Resource Recycling Ltd IPO
As of September 23, 2025, the shares of Jain Resource Recycling Limited in the grey market were trading at a 8.19 percent premium. The shares in the Grey Market traded at Rs. 251. This gives it a premium of Rs. 19 per share over the cap price of Rs. 232.
Overview of Jain Resource Recycling Limited
Incorporated in 2022, Jain Resource Recycling Limited is engaged in recycling and manufacturing non-ferrous metal products. The company operates three recycling facilities in Gummidipoondi, Chennai, processing various types of metal scrap, and a gold refining facility in Sharjah, UAE, through its subsidiary JIGV. It serves domestic and international clients across sectors like lead-acid batteries, electrical and electronics, pigments, and automotive.
The company’s product portfolio includes lead and lead alloy ingots, copper and copper ingots, aluminium and aluminium alloys, tin ingots, and plastic. These products are supplied to both domestic and international markets, including Singapore, China, Japan, and South Korea, catering to a range of industrial applications.
As of 31 July 2025, Jain Resource Recycling Limited employed 411 permanent employees. Its recycling facilities achieved a combined actual production of 64,619 MTPA, while the Hosur facility produced 88 MTPA, reflecting the company’s growing operational capacity.
Promoters of Jain Resource Recycling Limited
Jain Resource Recycling Limited’s promoter is Kamlesh Jain, who oversees the company’s operations and strategic growth. He plays a central role in guiding business decisions and steering the company toward its long-term objectives.
Jain Resource Recycling Ltd Selling Shareholders
The Jain Resource Recycling Ltd IPO features a significant Offer for Sale, with promoter Kamlesh Jain selling shares worth Rs. 715 crore and shareholder Mayank Pareek offering shares worth Rs. 35 crore.
Lead Managers of Jain Resource Recycling Ltd
DAM Capital Advisors Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited and PL Capital Markets Private Limited are the book-running lead managers for the IPO. Kfin Technologies Limited is the registrar handling the offer process.
Objectives of the IPO Offer
Jain Resource Recycling Ltd intends to use the net proceeds from its IPO for two main purposes: around Rs. 375 crore will be utilized for pre-payment or scheduled repayment of a portion of the company’s outstanding borrowings, while the remaining funds will be allocated to general corporate purposes. This funding strategy aims to strengthen operations, improve working capital, and support the company’s overall growth plans.
Financial Analysis of Jain Resource Recycling Ltd
Jain Resource Recycling Limited’s revenue from operations has increased from Rs. 4,428.42 crore in FY24 to Rs. 7,125.77 crore in FY25, which represents a growth of 60.91 percent. The net profit has increased by 36.29 percent, from Rs. 163.83 crore in FY24 to Rs. 223.29 crore in FY25.
The basic earnings per share increased by 35.35 percent and stood at Rs. 7.16 in FY25 as against Rs. 5.29 recorded in FY24. In terms of return ratios, the company reports a Return on Capital Employed (ROCE) of 24.22 percent and a Return on Net Worth (RoNW) of 41.56 percent. The company has a debt-to-equity ratio of 0.92x.
Jain Resource Recycling Limited Vs Peers
Jain Resource Recycling Limited reported an EPS of Rs. 7.16 and a RoNW of 41.56 percent. In comparison, Gravita India Limited’s EPS of Rs. 45.11 and its RoNW of 22.33 percent.Pondy Oxides & Chemicals Limited reported Rs. 22.03 EPS, and a RoNW of 12.71 percent.
Jain Resource Recycling Limited’s net asset value per share is Rs. 21.87, compared to Rs. 273.04 for Gravita India Limited and Rs. 205.26 for Pondy Oxides & Chemicals Limited.
Strengths of Jain Resource Recycling Limited
- The company has a proven track record of profitability and consistent financial performance in a sector with high entry barriers.
- The company has strategically located recycling facilities equipped to process multiple product lines.
- The company has a strong customer base, a global presence, and robust sourcing capabilities.
- The company employs hedging mechanisms to protect against commodity price risks for its products.
- The company has an experienced management team and skilled personnel with extensive industry expertise.
Weaknesses of Jain Resource Recycling Limited
- Nearly 85 percent of the company’s revenue in FY2025 came from lead and copper ingots, making it vulnerable to demand fluctuations in these key products.
- The company relies heavily on its top customers, and the absence of long-term contracts means losing any of them could negatively impact revenue and profitability.
- There have been past regulatory actions against the company’s promoter by SEBI or stock exchanges, and similar proceedings could occur in the future.
- The company faces strict quality standards and has had multiple customer order cancellations in the past three fiscal years; non-compliance could harm its reputation, revenue, and financial performance.
- The company relies heavily on third-party suppliers for scrap, with 75–80 percent imported over the past three years; supply disruptions or price fluctuations could negatively affect operations and financial performance.
Conclusion
Jain Resource Recycling Limited’s initial public offering (IPO) provides investors with the opportunity to invest in a growing metals recycling company with strong operations, good financial performance, and a global customer base. Risks to consider include reliance on key products and customers, regulatory issues, and raw material price fluctuations. The IPO offers long-term potential, but investors should weigh these challenges before investing.
Written By Akshay Sanghavi
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