About Jain Resource Recycling Limited - Mainboard IPO
Jain Resource Recycling Limited is India’s largest metal recycling company that turns old scrap metals into useful products. Started as a family business in 1953, the company has been in the recycling business for over 70 years and has now become a major player in converting waste metals like lead, copper, and aluminum into high-quality ingots (metal blocks).
The company operates under the brand name Jain Metal Group and is based in Chennai, Tamil Nadu. They take old batteries, wires, electronic waste, and other metal scraps and convert them into pure metal blocks that are used to make new products.
READ DRHP HERE: SEBI|DRHP| JAIN RESOURCES|
Key Information IPO Timeline (Important Dates)
IPO Price Band |₹220 - ₹232 per share|
Minimum Lot Size |64 shares (about ₹14,848 at highest price)|
Issue Size |₹1,250 crore (₹500 crore fresh + ₹750 crore OFS)|
Face Value| ₹2 per share|
Stock Exchanges |BSE and NSE (Mainboard IPO)|
Registrar |Kfin Technologies Limited CLICK HERE |
Book-running Managers| DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment| Advisors, |PL Capital Markets|
| Event | Date |
|---|---|
| IPO Opens | September 24, 2025 |
| IPO Closes | September 26, 2025 |
| Allotment Date | September 29, 2025 |
| Refunds/Unsuccessful Bids | September 30, 2025 |
| Shares in Demat Account | September 30, 2025 |
| Listing Date | October 1, 2025 |
What Is the Money Used For?
The funds raised will be used mainly for:
- ₹375 crore - Repaying old loans (75% of fresh issue)
- ₹125 crore - General corporate purposes (25% of fresh issue)
- Note: ₹750 crore is from existing shareholders selling their shares (OFS)
Key Financials (as per NSDL and SEBI Filings)
| Financial Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|
| Revenue | 3,064.07 | 4,428.42 | 7,125.77 |
| Profit After Tax (PAT) | 91.81 | 163.83 | 223.29 |
| EBITDA (Operating Profit) | 124.18 | 227.22 | 368.58 |
| EBITDA Margin | 4.05% | 5.13% | 5.17% |
| PAT Margin | 3.00% | 3.70% | 3.13% |
| Return on Equity (ROE) | 59.94% | 57.66% | 40.77% |
| ROCE | 12.31% | 19.13% | 24.22% |
| Earnings Per Share (EPS) | - | - | ₹7.16 |
| Debt to Equity | 2.95 | 1.65 | 0.92 |
Explanation of Financial Terms:
- Revenue: Total sales from business
- EBITDA: Operating profits before interest and taxes
- PAT: Final profit after all expenses and taxes
- ROE/ROCE: How efficiently the company uses investor money
- EPS: Profit earned for each share
- Debt to Equity: How much loan compared to owner’s money
Market Position
- India’s largest non-ferrous metal recycling company by revenue
- 3.5% market share in India’s copper recycling industry
- London Metal Exchange (LME) registered - their lead brand “Jain 9998” is globally recognized
- Major customers include Mitsubishi Corporation, Vedanta, IXM SA
Analysis
- Strong revenue growth: Revenue grew 61% in FY25 and 45% in FY24
- Market leader: Largest player in India’s metal recycling industry
- Global presence: Exports to 20+ countries with international recognition
- Improving efficiency: Better profit margins and reducing debt levels
- Sustainable business: Recycling aligns with government’s circular economy goals
- Experienced management: Promoter has 30+ years industry experience
Why Some Investors Like This Mainboard IPO
- Growing industry: India’s recycling market expected to reach $1.34 billion by 2030
- Government support: Policies promoting circular economy and sustainability
- Strong fundamentals: Consistent profit growth and improving financial metrics
- Export potential: Global demand for recycled metals increasing
- Strategic location: Chennai port proximity helps in logistics
Points of Caution:
- Customer concentration: Top 10 customers account for 58% of revenue
- Commodity price risk: Business affected by global metal price fluctuations
- Import dependency: 75-80% raw material imported, vulnerable to supply disruptions
- Regulatory risks: Past SEBI actions against promoter
- High working capital needs: Business requires significant funding for operations
- First-time public issue: No trading history for the shares
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.