For investors, it can be quite challenging to decide if the Jain Resource Recycling IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Jain Resource Recycling IPO. This will help you analyze the strengths, risks, and financial details of the Jain Resource Recycling IPO, making your investment decision better.
About Company
Founded in 2022, Jain Metal Group is one of the growing companies engaged in recycling and producing non-ferrous metals in India. The company has advanced facilities, which are the major reason for their success, because these advanced facilities are able to handle multiple recycling processes at one location, along with a strong global network for sourcing recyclable materials.
Its product portfolio consists of lead and lead alloy ingots, copper and copper ingots, and aluminium and aluminium alloys. The company has raw materials, including: lead scrap types like rails, rings, relay, and radio for lead products; (ii) copper scrap types like druid, berry, and birch for copper products; and (iii) aluminium scrap types like tread, talon, and tense for aluminium products.
The firm provides its products to various companies in different industries, such as lead-acid batteries, electrical and electronics, pigments, and automotive. Further, the company’s growth has a major stand in their skilled and experienced promoters and management team who have extensive experience in this field.
Strengths
- The company has shown a track record of making profits and maintaining steady financial performance in the non-ferrous metal recycling sector.
- Jain resource consists of convenient recycling facilities with capabilities to handle multiple products.
- Strong customer base, established presence in international markets, and excellent sourcing capabilities.
- The company is backed by an experienced management team and promoters who have more than 10 years of experience in the Metal Industry.
Weaknesses
- In FY25, most of the company’s revenue came from Lead and Lead Alloy Ingots (39.46%) and Copper and Copper Ingots (44.82%). Meaning any drop in the demand of these products can negatively impact the business, cash flow, and overall condition.
- The company’s revenue mainly comes from the top 10 customers, and most of them do not have a long-term contract with the company. Losing any of these customers can badly affect the overall business.
- The company’s valuation may be higher than that of some peers and the industry, which can adversely impact the business and cash flow.
- Not being able to diversify its offerings or expand into new product categories can negatively impact the business, cash flow, and overall performance.
Jain Resource Recycling IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Capital Market | Neutral |
| Canara Bank | Apply |
| DRChoksey FinServ | |
| Emkay Global | |
| Hem Securities | |
| IDBI Capital | |
| Marwadi Shares | |
| Nirmal Bang | |
| SBICAP Securities | |
| Sharekhan | |
| SMC Global | |
| Sushil Finance | |
| Swastika Investmart | |
| Ventura Securities | |
| Geojit | |
| Reliance Securities | |
| BP Wealth | |
| ICICIdirect | |
| Choice Broking |
Jain Resource Recycling IPO Details
| IPO Open Date: | September 24, 2025 |
| IPO Close Date: | September 26, 2025 |
| Face Value: | ₹2 Per Equity Share |
| IPO Price Band: | ₹220 to ₹232 Per Share |
| Issue Size: | ₹1,250 Crores |
| Fresh Issue | ₹500 Crores |
| Offer-for-Sale | Up to 3,23,27,586 equity shares |
| Registrar | Kfin Technologies Ltd. |
| IPO Lead Managers | Dam Capital Advisors Ltd. ICICI Securities Ltd. Motilal Oswal Investment Advisors Ltd. PL Capital Markets Pvt. Ltd. |
| Basis of Allotment | September 29, 2025 |
| IPO Listing Date: | October 1, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Total Income | ₹7,162.15 crores | ₹4,484.84 crores | ₹3,107.53 crores |
| EBITDA | 368.58 crores | 227.22 crores | 124.18 crores |
| EBITDA Margin (%) | 5.17% | 5.13% | 4.05% |
| Profit after Tax (PAT) | 223.29 crores | 163.83 crores | 91.81 crores |
| Net Worth | 707.46 | 367.18 | 196.97 |
| Return on Capital Employed | 24.22% | 19.13% | 12.31% |
| Total Borrowings | ₹919.92 Crores | ₹909.38 Crores | ₹732.79 Crores |
Peer Comparison with the Company
| Name of the Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| Jain Resource Recycling Limited | ₹2 | [●] | ₹7.16 | 41.56% | ₹21.87 |
| Gravita India Limited | ₹2 | 37.67x | ₹45.11 | 22.33% | ₹273.04 |
| Pondy Oxides & Chemicals Limited | ₹5 | 55.24x | ₹22.03 | 12.71% | ₹205.26 |
Key Performance Indicator
| KPI | Values |
| ROE | 40.77% |
| ROCE | 24.22% |
| Debt/Equity | 0.92 |
| RoNW | 41.56% |
| PAT Margin | 3.13% |
| EBITDA Margin | 5.17% |
| Price to Book Value | 20.44 |
Promoters & Track Records, if any
- Kamlesh Jain, aged 57 years, is our Promoter and is the Chairman and Managing Director of the Company. He holds 258,115,160 shares, representing 79.78% of the paid-up Equity Share capital.
Information on Industry’s P/E Ratio
The company Jain Resource Recycling’s IPO did not show the P/E ratio in the RHP. However, let’s check out the Metal industry’s P/E ratio to understand it more.
The company’s P/E ratio has ranged between a high of 55.24 and a low of 37.67, with an average of 46.45.
Object of the IPO
- The proceeds raised from the fresh issue will be utilized for the pre-payment and repayment of certain borrowings taken by the company.
- Lastly, the remaining funds will be used for the company’s general corporate purposes.
Jain Resource Recycling IPO – Should You Apply or Not?
The Jain Resource recycling is involved in the recycling and production of non-ferrous metals in India, and comes with an established industry presence, diversified product portfolio, and established presence in international markets. The strong customer base, consistent financial track record, and long-standing industry experience position it well for future growth. However, greater dependence on key products like lead and copper, price volatility, and higher valuation are some of the risks the investors must keep in mind before subscribing.
The positive GMP and attractive financial performance make this IPO a good choice for investors who are looking for long-term listing gains. Cautious Investors may choose to apply for this IPO for short-term listing gains after evaluating the Grey Market Premium trends (GMP) and market sentiment and demand.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
