Jain Resource Recycling Makes Strong Debut with 15.50% Premium, Lists at ₹267.95 Against Exceptional Subscription

Jain Resource Recycling Limited, the non-ferrous metal recycler and manufacturer producing lead, copper, and aluminium products, made a strong debut on BSE and NSE on October 1, 2025. After closing its IPO bidding between September 24-26, 2025, the company commenced trading with a 14.33% premium opening at ₹265.25 and rose to ₹267.95 with gains of 15.50%, reflecting positive investor sentiment towards the metal recycling sector backed by exceptional subscription response.

Jain Resource Recycling Listing Details

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Jain Resource Recycling Limited launched its IPO at ₹232 per share with a minimum investment of 64 shares costing ₹14,848. The IPO received exceptional response with a subscription of 16.76 times - retail investors at moderate 3.81 times, NII at solid 5.59 times, and QIB at outstanding 26.67 times, indicating strong institutional confidence in the non-ferrous metal recycling business despite relatively subdued retail participation.

First-Day Trading Performance Outlook

• Listing Price: Jain Resource Recycling share price opened at ₹265.25 representing a premium of 14.33% from the issue price of ₹232, and rose to ₹267.95, delivering gains of 15.50% for investors reflecting positive market sentiment towards metal recycling sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range including lead and lead alloy ingots, copper and copper ingots, aluminium and aluminium alloys, tin ingots, and plastic serving lead-acid battery, electrical, electronics, pigments, and automotive sectors globally.
• Strategic Operations Infrastructure: Three recycling facilities at SIPCOT Industrial Estate, Chennai with capabilities to handle multiple product lines, plus gold refining facility in UAE through subsidiary ensuring operational diversification and geographic presence.
• Exceptional Financial Performance: Outstanding PAT growth of 36% to ₹223.29 crore and revenue growth of 60% to ₹7,162.15 crore in FY25, exceptional ROE of 40.77%, solid ROCE of 24.22%, and strong client base including Vedanta, Luminous, and international traders.

Challenges:

• Extremely High Valuation: Alarming post-issue P/E of 35.86x and elevated price-to-book value of 20.44x reflecting aggressive valuation multiples far exceeding industry norms requiring sustained extraordinary growth to justify premium pricing.
• Thin Profitability Margins: Low PAT margin of 3.13% and modest EBITDA margin of 5.17% indicating limited pricing power in competitive metal recycling industry with high commodity price volatility and margin pressure risks.
• High Leverage and Market Risks: Elevated debt-to-equity ratio of 0.92 indicating substantial financial leverage, operating in highly competitive and fragmented segment with commodity price fluctuations requiring hedging mechanisms for risk protection.

Utilisation of IPO Proceeds

• Debt Reduction: ₹375.00 crore for pre-payment of outstanding borrowings improving financial leverage from elevated 0.92x debt-to-equity ratio, reducing interest burden, and strengthening balance sheet for sustainable growth.
• General Corporate Purposes: ₹59.11 crore supporting business operations, working capital requirements, strategic initiatives, and expansion activities for sustained growth in competitive metal recycling segment.

Financial Performance of Jain Resource Recycling

Revenue: ₹7,162.15 crore for FY25, showing impressive growth of 60% from ₹4,484.84 crore in FY24, reflecting strong market demand and successful business scaling in non-ferrous metal recycling.

Net Profit: ₹223.29 crore in FY25, representing solid growth of 36% from ₹163.83 crore in FY24, indicating operational efficiency and business momentum despite thin margins in competitive metal recycling industry.

Financial Metrics: Exceptional ROE of 40.77%, solid ROCE of 24.22%, elevated debt-to-equity ratio of 0.92, low PAT margin of 3.13%, modest EBITDA margin of 5.17%, and estimated market capitalisation of ₹9,246.57 crore.