Jain Resource Recycling IPO: All You Need to Know Before Investing

Jain Resource Recycling Limited (popularly called Jain Metal Group or JMG) came with a ₹1,250 crore IPO that is open between September 24 and September 26, 2025, at a price band of ₹220-₹232 per share. Of this, ₹500 crore will be a fresh issue, and ₹750 crore will be an Offer for Sale (OFS) by promoters.

The GMP stood at about ₹28, which points to around 12% listing gains if the trend holds. The subscription demand among investors will be worth tracking, but the modest premium shows this is a business investors will value more for fundamentals than just short-term buzz.

In this blog, we will decode what the company does, why it is raising money, strengths and risks to note, how it compares with competitors, whether the IPO is attractively valued, who the people behind the company are, and what all this means for investors.

IPO Overview

• IPO Date: September 24 to September 26, 2025
• Total Issue Size: ₹1,250 crore
• Price Band: ₹220 to ₹232 per share
• Lot Size: 64 Shares
• Tentative Allotment Date: September 29, 2025
• Listing Date: October 1, 2025 (Tentative)
• GMP: The GMP for Jain Resource Recycling IPO is ₹28, reflecting a 12% gain over the issue price, according to Chittorgarh.com (as of September 24).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

What Does Jain Resource Recycling Do?

JMG is a recycling company. Simply put, it takes waste metal scrap, processes it, and produces ready-to-use non-ferrous metals like copper, lead, and aluminum ingots and their alloys. These metals are then sold to industrial customers, who use them in things like car batteries, wires, electronics, paint pigments, and more.

• Copper and copper ingots brought in 44.8% of its revenue in FY25.
• Lead and lead alloy ingots added another 39.5%.
• Aluminum and aluminum alloys contributed 3.8%.

The company operates four recycling plants and sells to both Indian and international customers, with exports making up more than 60% of revenues.

Objectives of the IPO

The objectives of the IPO are:

• ₹375 crore from the fresh issue will be used to reduce debt. This should cut the company’s debt-to-equity ratio from 0.92 to just 0.19, improving financial stability.
• The rest will be used for general corporate purposes.
• The ₹750 crore OFS will go entirely to promoters, not to the company.

Strengths:

• Fast growth: Revenue grew 60.9% in FY25 to ₹7,126 crore and profit rose 36.3% to ₹223 crore.
• Efficiency gains: Fixed asset turnover is 83.36, which means revenue of ₹83 for every ₹1 invested in plants and machinery - way ahead of peers.
• Debt reduction: IPO proceeds will slash debt and lower finance costs.
• International presence: Almost 60% of revenue comes from exports, showing resilience beyond domestic demand cycles.
• Operational edge: Customer payments are collected in just 8 days, compared to peers taking 20-90 days.

Risks:

• Customer concentration: Top 5 clients bring 44% of revenue - losing one would hurt.
• Export dependency: Heavy reliance on exports makes earnings vulnerable to currency swings. A weak rupee can lift sales, but volatility can disrupt profits.
• Thin margins: EBITDA margin of 5.2% is lower than Gravita India’s 8.4%.
• Cash flow gap: Despite profits, net cash from operations in FY25 was only ₹3.6 crore, which means very little surplus left after working capital adjustments.
• Failed diversification: Its gold refining venture in the UAE shut down within months, showing some execution risk.

For detailed information, visit Jain Resource Recycling’s IPO page.

Peer Comparison

Jain Resource Recycling’s listed peers include Gravita India and Pondy Oxides & Chemicals.

• Revenue: JMG is the largest with ₹7,126 crore vs Gravita’s ₹3,869 crore and POCL’s ₹2,057 crore.
• Profitability: ROE is 40.8%, meaning the company earns ₹41 for every ₹100 invested by shareholders — stronger than Gravita (22.2%) and POCL (12.2%).
• Growth: JMG grew revenue 60.9% in FY25; peers grew between 22% and 34%.
• Efficiency: Collects money in 8 days vs Gravita’s 25 days.
• Margins: EBITDA margin is 5.2%, weaker than Gravita but better than POCL.
• Debt: Still carries higher leverage than peers even after IPO.

Source: RHP, internal calculations

IPO Valuation

• Market cap at upper price: ₹8,006 crore.
• P/E ratio: 35.9x, slightly cheaper than peers Gravita (37.7x) and POCL (55.2x).
• Industry average P/E: ~46x, which suggests the IPO is not expensive compared to listed players.
• Debt repayment after IPO will strengthen its balance sheet, and efficiency metrics make the valuation look more grounded.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind Jain Resource Recycling

The company is led by Kamlesh Jain, Chairman and MD, with over 30 years’ experience in the recycling business. Having been part of the original family-run Jain Metal Rolling Mills since the 1990s, he’s built the group into India’s largest non-ferrous metal recycler. Besides the company, he holds a leadership position on the Recycling Association of Africa.

Supporting him is Mayank Pareek, Joint MD and a Chartered Accountant with over a decade of experience in metals. He also has a role on the Lead Advisory Committee of the MCX, giving him visibility in the commodity markets where the company operates.

The finance function is led by Hemant Jain, also a CA, who has been CFO since the business was still a partnership. Together, this trio brings continuity, domain expertise, and institutional memory. They are flanked by independent directors with backgrounds in public policy, IT, and financial regulation, which collectively should provide a balanced governance structure.

Selling Shareholders via the IPO

A large part of Jain Resource Recycling’s IPO - ₹750 crore out of ₹1,250 crore - is made up of the OFS. This means the proceeds from this portion will not flow into the company but will go directly to the selling shareholders. Investors should note this because the fresh issue, which funds growth, is limited to ₹500 crore.

Kamlesh Jain, the Promoter and CMD, is the primary seller, cashing out up to ₹715 crore worth of shares. While data suggests a return multiple of 190.2x, this number should be understood in context. His average acquisition price per share is a very low ₹1.22. This stems from his long-term involvement with the business since the early partnership firm days, where shares were allotted at historical valuations, including consideration other than cash. So, the high return multiple reflects legacy ownership, not short-term investor-style gains.

Mayank Pareek, Joint Managing Director, is the other seller, offering shares worth ₹35 crore. His weighted average acquisition cost is ₹12.88 per share, giving him returns of around 18x on his investment. Compared to the promoter, his entry cost is relatively higher, reflecting a more recent association.

In simple words, the OFS is largely a partial monetisation by the promoters. They are staying invested with significant ownership and control, but unlocking some capital in this IPO. For new investors, this means around 60% of the IPO money goes to promoters’ pockets, not into the company’s balance sheet - something worth factoring into the investment outlook.

Industry Outlook

The non-ferrous recycling industry is structurally positioned for growth. Demand for secondary lead is expected to grow at 5.5-6.5% annually until 2030, led by automotive batteries and electronics. A government mandate to use at least 5% recycled material in new products from FY28 will boost long-term demand. Regulatory tightening by the Central Pollution Control Board is also pushing business from smaller, unorganized recyclers to organized companies like JMG. The biggest challenges here are volatility in raw material prices, environmental compliance costs, and thin margins due to high material consumption costs.

Analyst View

On paper, JMG is a story of scale, speed, and efficiency. It has grown faster than its peers, collects money faster, and makes better use of its fixed assets. Post-IPO, it will also have a stronger balance sheet thanks to lower debt. That said, its thin operating margin, dependence on a handful of clients, and export reliance create pressure points. The large OFS also means investor money is partly funding promoter exits and not entirely going to growth.

For investors, the IPO is fairly valued relative to peers and offers exposure to a government-backed trend toward recycling. But the thin margins and customer concentration mean this should be viewed as a growth + efficiency play rather than a margin-expansion story.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Jain Resource Recycling's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.