Plans Include Fresh Equity Issue and Offer for Sale by Promoters and Shareholders
Jain Resource Recycling Ltd, a Tamil Nadu-based non-ferrous metals recycling firm, has officially filed its Draft Red Herring Prospectus (DRHP) with India's market regulator, the Securities and Exchange Board of India (SEBI), aiming to raise Rs 2,000 crore via an Initial Public Offering (IPO).
The IPO comprises a fresh issue of equity shares aggregating up to Rs 500 crore, alongside an Offer for Sale (OFS) amounting to Rs 1,500 crore, as outlined in the DRHP submitted on March 30, 2025.
Details of Offer for Sale (OFS)
In the OFS, promoter Kamlesh Jain plans to sell shares worth Rs 1,430 crore, while shareholder Mayank Pareek will offload shares worth Rs 70 crore.
Potential Pre-IPO Placement
The company is also considering a pre-IPO placement round to raise up to Rs 100 crore. Should this pre-IPO placement materialize, the fresh equity component of the IPO will be adjusted accordingly.
Utilization of IPO Proceeds
Jain Resource Recycling intends to allocate the funds raised through the fresh issue primarily toward debt repayment, with any remaining balance earmarked for general corporate purposes.
Company's Core Business and Expansion
Specializing in the recycling and manufacturing of non-ferrous metals, Jain Resource Recycling’s product lineup includes:
- Lead and lead alloy ingots
- Copper and copper ingots
- Aluminium and aluminium alloys
In a strategic move towards international expansion, the company has recently partnered with Ikon Square Ltd UAE to establish a gold refining facility in Sharjah, UAE. Jain Resource Recycling also engages in trading activities involving non-ferrous metals and various other commodities.
IPO Management and Listing Plans
The book-running lead managers appointed for overseeing the IPO are DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors, and PL Capital Markets.
Post-IPO, Jain Resource Recycling’s equity shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).