Jain Resource Recycling IPO Opens Tomorrow: GMP Indicates Over 10% Listing Gain, Check Key Details

Jain Resource Recycling Ltd. is set to launch an initial public offering (IPO) on Sept. 24 to raise over Rs 1,200 crore from the primary market. The company is involved in the recycling of metal products. In the run-up to the IPO launch, grey market trends suggest a premium of over 10% for the issue. Investors who wish to bid for shares in the IPO must check the following details before making a decision.

According to InvestorGain, the GMP for the Jain Resource Recycling IPO stood at Rs 25 as of 2:35 p.m. on Sept. 23. It indicates a listing price of Rs 257 apiece at a premium of 10.78% on the upper limit of the price band. 

Note: GMP does not represent official data and is based on speculation.

The Jain Resource Recycling IPO is a book-built issue of Rs 1,250 crore. It comprises a fresh issue of 2.16 crore shares amounting to Rs 500 crore and an offer-for-sale (OFS) of 3.23 crore shares worth Rs 750 crore.

Retail investors can participate in the IPO by bidding for a single lot size of 64 shares, leading to an investment of Rs 14,848. Small Non-Institutional Investors are required to bid for 14 lots, amounting to an investment of Rs 2,07,872. Big Non-Institutional Investors must bid for a minimum of 68 lots, requiring an investment of Rs 10,09,664.

The price band for the IPO is set between Rs 220 and Rs 232 per share.

Investors can bid for shares in the IPO from Sept. 24 to Sept. 26. The share allotment status is slated to be finalised on Sept. 29. The company will transfer shares to the demat accounts of successful bidders on Sept. 30 and refunds to non-allottees will be done on the same day. 

Shares of the company are expected to be listed on the BSE and NSE on Oct. 1.

Qualified Institutional Buyers (QIBs) will be offered at least 75% of the offer. Retail investors will be allocated a maximum of 10% of the offer and up to 15% will be reserved for Non-Institutional Investors. 

Dam Capital Advisors Ltd. is the book-running lead manager and KFin Technologies Ltd. is the registrar of the issue.

The company will use proceeds from the IPO to clear debt and for general corporate purposes.

The company specialises in recycling non-ferrous metals. Its portfolio includes lead alloy ingots and copper ingots. 

The company reported a 36.3% year-on-year (YoY) increase in profit after tax (PAT) to Rs 223.29 crore in FY25 from Rs 163.83 crore in FY24. Revenue from operations rose 60.9% YoY to Rs 7,125.77 crore in FY25 from Rs 4,428.42 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.