Jain Resource Recycling mobilises Rs 562.5 crore via anchor book ahead of Rs 1,250-crore IPO

Jain Resource Recycling IPO News

Scrap recycling company Jain Resource Recycling has raised Rs 562.5 crore from 40 global and domestic institutional investors via the anchor book on September 23, a day before the public issue opens.

The non-ferrous metal products recycling company aims to mobilise Rs 1,250 crore through its initial public offering (IPO), which comprises a fresh issue of shares worth Rs 500 crore and an offer-for-sale (OFS) of shares worth Rs 750 crore by existing shareholders. The price band for the offer is Rs 220–232 per share.

"...has finalised allocation of 2,42,45,689 equity shares to anchor investors at Rs 232 per share," Jain Resource said in its filing to the exchanges.

Several global marquee names, including 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 such as 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.

"Out of the total allocation of 2.42 crore shares to anchor investors, 83.62 lakh shares worth Rs 194 crore were allocated to five domestic mutual funds which applied through a total of 14 schemes," the company said.

The company intends to utilise Rs 375 crore of the fresh issue proceeds to reduce its debt burden, with the remaining amount earmarked for general corporate purposes.

The maiden public issue will open on September 24 and close on September 26. The IPO share allotment will be finalised by September 29, while trading in Jain Resource Recycling shares will commence on the bourses effective October 1.

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.