IPO Details
RHP/DRHPIssue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of Jain Resource Recycling IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Jain Resource Recycling IPO
The IPO of Jain Resource Recycling Ltd comprises a fresh issue and an offer for sale. The fresh issue size is pegged at ₹500 crores, while the offer for sale aggregates up to ₹1500 crores. It’s a 100% book-built issue. The lot size is TBA. The price band is TBA.
The IPO will open on TBA and close on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA and the date of allotment is TBA. The listing of shares will take place on a date TBA.
Objectives of Jain Resource Recycling IPO
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company
- General corporate purposes
Jain Resource Recycling IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Aggregates up to ₹500 crores |
Offer for Sale | Aggregates up to ₹1500 crores |
EPS in ₹ in FY 24 | 5.29 |
Jain Resource Recycling IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not less than 75% of the issue |
Non-institutional Bidders | Not more than 15% of the offer |
Retail Individual Bidders | Not more than 10% of the offer |
Industry Outlook
Currently estimated at 45 million tonne, the global non-ferrous metals recycling market is a vital arm of the metal recycling industry. It mainly encompasses metals such as aluminium, copper, lead and zinc. The global non-ferrous metals recycling market is experiencing significant shifts, driven by rapid urbanisation, technological advancements and regulatory support.
Metal recycling in India is poised to undergo a significant transformation, driven by the government's commitment to reducing industrial waste and promoting sustainable practices.
Company Information
With a rich legacy spanning seven decades, Jain Metal Group has established itself as a pioneer in the recycling and production of non-ferrous metals in India. The company is primarily focused on manufacturing of non-ferrous metal products by way of recycling of non-ferrous metal scrap. Its product portfolio comprises lead and lead alloy ingots, copper and copper ingots, aluminium and aluminium alloys.
Strengths of Jain Resource Recycling IPO
Strategically Located Recycling Facilities with Capabilities to Handle Multiple Products Lines
Jain Resource Recycling Ltd conducts its recycling operations at three recycling facilities in India located at SIPCOT Industrial Estate, Gummidipoondi, Chennai spread across 26.94 acres of leased land providing it the benefit of integrated and centralised operations.
The strategic location of recycling facilities offers it the benefit of utilising various by-products of one facility as raw materials for another facility in addition to the ability to utilise common capabilities including laboratory infrastructure, technical know-how etc.
Strong Customer Base with Global Footprint and Deep Sourcing Capabilities
The company has an established presence in international markets, which is a strong complement to its domestic business and presents strong opportunities for growth.
Its capabilities enable it to serve various customers in international markets with a significant portion of its revenue being generated from export of its products to more than 20 countries as on September 30, 2024 including Singapore, Japan, China, Indonesia, South Korea, Hong Kong etc.
Application of Hedging Mechanism for Commodity Price Risk Protection for Products
The company’s business operations are directly impacted by fluctuations in the prices of base metals traded on the London Metal Exchange (LME). Price increase or decrease in these metals can significantly affect its profitability. For the purposes of safeguarding its financial position against this price volatility, it utilises hedging exclusively within the metals market by entering into futures derivative contracts on the LME.
Risks of Jain Resources Recycling IPO
- Dependence on Key Products and Limited Product Diversification
The company derives a substantial portion of its revenue from the sale of key products and any loss of sales due to reduction in demand for these products could adversely affect its business, financial condition, results of operations and cash flows. In addition, it may not be able to diversify into new product lines which may adversely affect its business, revenue from operations, cash flows and financial condition.
- Strict Quality Requirements
The company is subject to strict quality requirements and are consequently required to incur significant expenses to maintain its product quality. Any failure to comply with such quality standards may lead to cancellation of existing and future orders which may adversely affect its reputation, financial conditions, cash flows and results of operations.
- Dependence on Third-party Suppliers
The company depends on third party suppliers for the supply of scrap required for its business operations. Any disruptions in the supply or availability of the scraps or fluctuations in their prices may have an adverse impact on its business operations, cash flows and financial performance.
- Shortage of Essential Utilities
Any disruption or shortage of essential utilities could disrupt its operations and increase its production costs, which could adversely affect its results of operations.
Jain Resource Recycling IPO Financials
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV in ₹ Per Equity Share |
|---|---|---|---|---|
Jain Resource Recycling Ltd | 4428.41 | 5.29 | 58.08 | 11.35 |
Gravita India Ltd | 3160.75 | 34.88 | 35.51 | 114.07 |
Pondy Oxides and Chemicals Ltd | 1540.597 | 13.61 | 10.62 | 133.26 |
IPO Registrar and Book Running Lead Managers
IPO Registrar: KFin Technologies Ltd
Book Running Lead Managers: DAM Capital Advisors Ltd, ICICI Securities Ltd, Motilal Oswal Investment Advisors Ltd and PL Capital Markets Pvt Ltd
Business Model
A rich legacy spanning seven decades, Jain Resource Recycling Ltd’s product portfolio comprises lead and lead alloy ingots, copper and copper ingots and aluminium and aluminium alloys.
It caters to customers in various industries including lead acid battery, electrical and electronics, pigments, and automotive. Its clientele includes Vedanta Limited-Sterlite Copper, Luminous Power Technologies Private Limited and Yash Resources Recycling Limited and global customers such as Mitsubishi Corporation RtM Japan and Nissan Trading Co.
Company Growth Trajectory
The revenues of Jain Resource Recycling Ltd grew from ₹2849.599 crores in FY 22 to ₹4428.418 crores in FY 24. Its EBITDA margin grew from 4.09% in FY 22 to 5.13% in FY 24, while PAT margin grew from 3.05% in FY 22 to 3.70% in FY 24. Strategically located recycling facilities, strong customer base and an experienced management team have propelled the company's growth over the years.
Market Position
Jain Resource Recycling Ltd is amongst the two recycling companies in India to get its lead ingot registered as a brand by the London Metal Exchange, which provides it a distinct advantage of access to a broader customer base by offering products compliant with international quality standards along with the benefit of LME reference pricing with respect to supply of its products in global markets.
It has an extensive global footprint across major overseas geographies including Singapore, China, Japan and South Korea.
Jain Resource Recycling IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 4484.84 | 3107.52 | 2880.34 |
Profit Before Tax (in ₹ crores) | 214.60 | 123.62 | 122.47 |
Profit After Tax (in ₹ crores) | 163.82 | 91.81 | 86.80 |
EPS in ₹ | 5.29 | 2.98 | 2.82 |
Jain Resource Recycling IPO Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 214.60 | 123.62 | 122.47 |
Net Cash Generated from / (used in) Operating Activities (in ₹ crores) | 33.36 | 10.86 | 57.95 |
Net Cash Generated from/ (used in) Investing Activities (in ₹ crores) | (93.36) | (8.65) | (146.92) |
Net Cash Generated from Financing Activities (in ₹ crores) | 135.89 | 3.19 | 88.96 |
How to Check Jain Resource Recycling IPO?
Visit the Registrar’s Website
- Visit the official website of Kfin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’ dropdown
- Click on any one of the links
- Choose the company name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
Check on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Jain Resource Recycling Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN Then click 'Submit' to know the allotment status.
How to Apply for Jain Resource Recycling IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Jain Resource Recycling IPO FAQs
Where can I read more about Jain Resource Recycling business?
You can read more about Jain Resource Recycling and its IPO from the company’s red herring prospectus (RHP) here.
What is the Jain Resource Recycling IPO?
The Jain Resource Recycling Ltd IPO comprises a fresh offer and an offer for sale. The fresh issue size aggregates up to ₹500 crores, while the offer for sale is up to ₹1500 crores.
When will the IPO of Jain Resource Recycling go live?
The exact dates of the IPO are yet to be announced
