Jain Resource Recycling files DRHP with SEBI to raise up to Rs 2,000 crore via IPO

Jain Resource Recycling files DRHP with SEBI to raise up to Rs 2,000 crore via IPO

Jain Resource Recycling Limited, a leading player in the non-ferrous metal recycling industry, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise up to Rs 2,000 crore. The IPO will consist of a fresh issue of up to Rs 500 crore and an offer for sale (OFS) of up to Rs 1,500 crore by the selling shareholders.

The IPO will be managed by DAM Capital Advisors Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited, and PL Capital Markets Private Limited, while KFin Technologies Limited will act as the registrar to the offer. The net proceeds from the fresh issue will primarily be used to repay or pre-pay certain outstanding borrowings, while the remaining funds will be allocated for general corporate purposes to enhance the company’s operational capabilities and support future growth initiatives.

For the six months ended September 30, 2024, Jain Resource Recycling Limited reported revenue of Rs 2,888.6 crore and a profit after tax of Rs 112,1 crore. As of the same date, the company's net worth stood at Rs 481.8 crore with total borrowings amounting to Rs 969.7 crore.

Jain Resource Recycling Limited specialises in recycling non-ferrous metal scrap and producing a wide range of products, including lead and lead alloy ingots, copper and copper ingots, aluminium and aluminium alloys, as well as refined gold. The company aims to leverage the IPO proceeds to strengthen its financial position, reduce debt, and support its strategic expansion plans. The listing is also expected to enhance the company’s visibility and brand image among existing and potential customers.

The company has outlined strategic initiatives to expand its gold refining operations and diversify into heavy minerals. Additionally, it plans to forward integrate into copper cathode and wire rod manufacturing while maintaining a strong focus on sustainability and environmental, social, and governance (ESG) principles.

Through the IPO, the company aims to capitalize on growth opportunities, reduce debt, and solidify its position as a prominent player in the non-ferrous metal recycling industry.