The initial public offering of Jain Resource Recycling is set to open for public bidding today, September 24. The Rs 1,250-crore IPO is the largest among the 11 mainboard IPOs opening this week.
The maiden public issue of the scrap recycling company will remain open for subscription till September 26.
Jain Resource Recycling IPO GMP:
Ahead of listing, the unlisted shares of Jain Resource Recycling were trading with nearly 13 percent grey market premium over the IPO price at Rs 262 apiece, according to data on Investorgain. This is higher than the 8 percent GMP quotes by the site on Monday, and 6 percent GMP quoted during the weekend.
As per IPO Watch, the unlisted shares of the company were trading with nearly 9 percent GMP over the IPO price.
Key details about Jain Resource Recycling IPO:
The company moved to the capital markets to raise Rs 1,250 crore through a fresh issue of shares worth Rs 500 crore and an offer-for-sale (OFS) worth Rs 750 crore by the existing promoters. The price band has been set at Rs 220-232 apiece.
Investors can bid for a minimum of 64 equity shares and in multiples thereafter. Retail investors can invest a minimum amount of Rs 14,848. The allotments are expected to be announced by September 29, and the shares are scheduled to be listed on stock exchanges on October 1.
The company which recycles scrap metal into usable forms will use Rs 375 crore of the fresh issue proceeds to repay loans. The remaining funds will be allocated for general corporate purposes to enhance the company's operational capabilities and support future growth initiatives.
DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors, and PL Capital Markets are acting as the merchant bankers for the Jain Resource Recycling IPO.
Jain Resource Recycling IPO Anchor Book:
A day before the IPO opened for public bidding, Jain Resource Recycling announced that it has raised has raised Rs 562.5 crore from 40 global and domestic institutional investors via the anchor book on September 23.
Global marquee names like Goldman Sachs, Abu Dhabi Investment Authority, Optimix Wholesale Global Emerging Markets Share Trust, BNP Paribas, Societe Generale, Citigroup Global, Nomura Singapore, and East Capital participated in the anchor book.
Domestic institutional investors including HDFC AMC, Axis MF, Motilal Oswal AMC, Bandhan Mutual Fund, Helios MF, Tata AIA Life Insurance, Nuvama, Singularity AMC, SBI General Insurance, ICICI Lombard General Insurance, and Edelweiss Life Insurance also invested in Jain Resource Recycling through the anchor book.
Should you apply?
The global non-ferrous metals recycling market is a vital arm of the metal recycling industry, said Kotak Securities. “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,” it said.
"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," it added.
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