Jain Resource Recycling IPO sees 73% subscription on Day 1. Check GMP, other details

Jain Resource Recycling’s Rs 1,250 crore initial public offering (IPO), which opened for subscription earlier today, was subscribed 73% by investors, with the highest interest coming from QIBs.

At the end of the day, retail investors had subscribed to the issue by 51% while non-institutional investors (NIIs) made an overall subscription of 12%. Meanwhile, Qualified Institutional Buyers (QIBs) oversubscribed their share of the lot at 1.11 times.

The issue, which will close on September 26, comprises a fresh issue of Rs 500 crore and an offer-for-sale (OFS) worth Rs 750 crore.


The price band for the issue has been fixed at Rs 220–Rs 232 per share, with investors required to bid for a minimum lot size of 64 shares. At the upper end of the band, the company’s post-issue market capitalization is estimated at around Rs 8,006 crore.

Jain Resource Recycling GMP

The grey market premium (GMP) for the IPO is currently trending at around 7.8%, indicating moderate listing gains of Rs 18–20.

About Jain Resource Recycling

Part of the Chennai-based Jain Metal Group, Jain Resource Recycling is a leading player in India’s non-ferrous recycling industry. The company operates three manufacturing facilities at the Sipcot Industrial Estate in Gummidipoondi, Chennai, where it processes copper, lead, and aluminium scrap.

More than 60% of its products are exported to over 20 countries, including China, Singapore, South Korea, UAE, Taiwan, and Japan. Its product range includes London Metal Exchange (LME)-registered lead ingots, copper ingots, and aluminium alloys, catering to the automotive, electronics, and battery industries.

Some of its marquee clients include Vedanta Sterlite Copper, Luminous Power Technologies, Mitsubishi Corporation Japan, and Nissan Trading.

Jain Resource Recycling financial performance

In FY25, Jain Resource Recycling reported a 61% year-on-year jump in revenue to Rs 7,126 crore. Profit after tax (PAT) grew to Rs 223 crore, up from Rs 164 crore in FY24, while EBITDA rose to Rs 369 crore, underscoring strong operational performance.

Jain Resource Recycling valuation

At the upper price band, the IPO is priced at 35.9x FY25 earnings, which analysts note is fully valued. However, the company’s forward integration into copper cathode and wire rod manufacturing, along with plans to expand into niche recycling areas such as solar panels and automotive tire recycling, are seen as major growth drivers that could enhance earnings visibility.

What brokerage firms recommend?

Brokerage house Anand Rathi has given a “Subscribe – Long Term” rating on the issue. The note highlights Jain Resource Recycling’s global footprint, leadership position in the domestic recycling space, and consistent financial performance as reasons to stay invested.

“Leveraging its expertise in recycling, Jain Resource Recycling is well positioned to capture opportunities in green metals and new-age recycling domains. While valuations appear stretched, we believe the long-term prospects remain strong,” the brokerage stated.

About Jain Resource Recycling IPO and listing

The IPO is being managed by ICICI Securities, Motilal Oswal Investment Advisors, and PL Capital Markets, with KFin Technologies acting as the registrar. Shares of Jain Resource Recycling are expected to list on both BSE and NSE on October 1.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)