Jain Resource Recycling Limited files DRHP with SEBI for an IPO

Jain Resource Recycling Limited, India’s largest and fastest-growing non-ferrous metal recycling business, in terms of revenue for Fiscal 2024, Fiscal 2023 and Fiscal 2022 (Source: CRISIL) has filed Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO).

The Public Offer aggregating up to ₹ 2,000 crore comprises of a fresh issue of equity shares aggregating up to ₹ 500 crores and an offer for sale (OFS) aggregating up to ₹ 1,500 crores.

The offer for sale comprises of equity shares aggregating up to ₹ 1430 crore by Kamlesh Jain (“Promoter Selling Shareholder”); and equity shares aggregating up to ₹70 crore by Mayank Pareek (“Other Selling Shareholder”).

Kamlesh Jain is the promoter of the company.

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. (Source: CRISIL). Jain Resource Recycling Limited is primarily focused on the manufacturing of non-ferrous metal products through the recycling of non-ferrous metal scrap. The company’s product portfolio comprises (i) lead and lead alloy ingots; (ii) copper and copper ingots; and (iii) aluminium and aluminium alloys. The company is among the two recycling companies in India to get its lead ingot registered as a brand by the London Metal Exchange (Source: CRISIL), which provides the company 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 the supply of its products in global markets.

The company in consultation with the BRLMs may consider a Pre-IPO placement aggregating up to ₹ 100 crore prior to filing of the Red Herring Prospectus. The Pre-IPO placement, if undertaken, will be at a price to be decided by the company, in consultation with the BRLMs. If the pre-IPO placement is completed, the amount raised pursuant to the pre-IPO placement will be reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the SCRR.

Jain Resource Recycling Limited proposes to utilize the Net Proceeds towards pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company and general corporate purposes.

The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges, being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”).

DAM Capital Advisors Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited and PL Capital Markets Private Limited are the Book Running Lead Managers to the issue.