Jain Resource Recycling IPO GMP: Jain Resource Recycling is set to make its stock market debut on Wednesday, October 1, and the grey market premium (GMP) indicates a healthy start for the issue. The IPO allotment was finalised on September 29 after the subscription window that ran from September 24 to September 26. The IPO was priced in a band of ₹220-232 per share.
Jain Resource Recycling IPO GMP
The Jain Resource Recycling IPO GMP stood at ₹11 on Tuesday, implying potential listing gains of around 4.74 percent. Based on this premium, shares are expected to list at approximately ₹243, compared to the upper price band of ₹232.
Expert Take
“Jain Resource Recycling Limited is a prominent player in India’s non-ferrous metal recycling industry, specializing in the sustainable processing of copper, lead, and aluminium scrap. The company is part of the Jain Metal Group, a well-established entity in the metal recycling sector. The company operates three recycling facilities situated in the SIPCOT Industrial Estate, Gummidipoondi, Chennai. These facilities are dedicated to processing various types of metal scrap, including copper, lead, and aluminium. We expect the company to list at a premium to its issue price, given the current Grey Market Premium.
At the upper end of the price band, the company is valued at 23.2x FY25 P/E, with a post-issue market capitalization of ₹31,031 million. It seeks to replicate its strong performance in the solar-powered pump system market in Maharashtra across key states such as Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh. The company has been, and is expected to remain, a major beneficiary of government schemes, subsidies, and renewable energy initiatives. Investors may consider booking partial profits on listing and holding the rest for long-term post listing,” said Narendra Solanki, Head Fundamental Research – Investment Services, Anand Rathi Shares and Stock Brokers.
Jain Resource Recycling IPO Subscription Status, Key Details
The ₹1,250 crore initial public offering (IPO) of Jain Resource Recycling Limited drew robust demand across investor categories, closing with a total subscription of 16.76 times over three days of bidding.
The IPO is priced in the band of ₹220-232 per share and consists of a fresh issue of 2.16 crore equity shares worth ₹500 crore along with an offer-for-sale (OFS) of 3.23 crore shares amounting to ₹750 crore. Investors could apply for a minimum of 64 shares, translating into a retail investment of ₹14,848 at the upper price band.
The offering attracted bids for 49.67 crore shares against 2.96 crore shares on offer. The retail quota was subscribed 3.81 times, while the Non-Institutional Investors (NII) portion saw 5.59 times demand. The Qualified Institutional Buyers (QIBs) displayed the strongest appetite, subscribing 26.67 times.
According to the company, the net proceeds will be used for prepayment or scheduled repayment of certain borrowings and for general corporate purposes. Dam Capital Advisors Ltd. acted as the book running lead manager, while Kfin Technologies Ltd. served as the registrar.
About Jain Resource Recycling
Incorporated in 2022, Jain Resource Recycling operates in the recycling and manufacturing of non-ferrous metals. Its product portfolio includes lead and lead alloy ingots, copper and copper ingots, aluminium and aluminium alloys.
The company’s products find applications across industries such as lead-acid batteries, electrical and electronics, pigments, and automotive. Its clientele spans both domestic and international markets, with key customers including Vedanta Limited-Sterlite Copper, Luminous Power Technologies, Yash Resources Recycling, Mitsubishi Corporation RtM Japan, and Nissan Trading Co.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
