Jain Resource Recycling IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The Jain Metal Group is engaged in the recycling and production of non-ferrous metals in India with capabilities to handle multiple products in recycling at a single location and has an extensive global network for sourcing recyclable materials. The company is primarily focused on manufacturing of non-ferrous metal products by way of recycling of non-ferrous metal scrap. Its product portfolio comprises of (i) lead and lead alloy ingots; ; (ii) copper and copper ingots; and (iii) aluminum and aluminum alloys.

Company’s lead ingot is registered as a brand by the London Metal Exchange which provides the Company a distinct advantage of access to a broader customer base by offering products compliant with international quality standards along with the benefit of LME reference pricing with respect to supply of its products in global markets. The company is also engaged in trading of non-ferrous metals and other commodities which constitutes 2.03%, 1.98% and 4.50% of our revenue from operations for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Its recycling operations are vertically integrated with end-to-end recycling processes wherein raw materials are procured both domestically and internationally. It cater to customers in various industries including lead acid battery, electrical and electronics, pigments, and automotive. Its clientele includes Vedanta Limited-Sterlite Copper, Luminous Power Technologies Private Limited and Yash Resources Recycling Limited and global customers such as Mitsubishi Corporation RtM Japan and Nissan Trading Co. It cater to both international and domestic markets.

The company aim to expand its product offerings by expanding into copper cathode, the purest form of copper, wire rod and copper busbar manufacturing business (“New Project”) thereby increasing its ability to cater to a more diversified consumer base and enlarging the value chain in the business. Under the New Project, copper cathode shall be produced from recycled copper materials by removal of fringe metallic impurities by way of electrolytic refining and subsequently converting the copper cathode into high-quality copper wire rod.

IPO Details:

Objectives of Issue:

• Pre-payment or scheduled re-payment of a portion of certain outstanding borrowings availed by the Company.
• General Corporate Purpose

Key Strengths:

• Strong customer base with global footprint- The company have an established presence in international markets. Its capabilities enable us to serve various customers in international markets with significant portion of its revenue being generated from export of its products to more than 20 countries as on March 31, 2025 including China, Singapore, South Korea, UAE, Taiwan, Japan, etc. Its revenues from exports grew at a CAGR of 64.93% between Fiscals 2023 and Fiscal 2025 to ₹43,033.25 million in Fiscal 2025 as compared to ₹15,820.73 million in Fiscal 2023. It generated revenue of ₹43,033.25 million, ₹ 23,960.22 million and ₹15,820.73 million from its export sales as on for Fiscals 2025, 2024 and 2023 respectively, which represented 60.39%, 54.11% and 51.63% of its revenue from operations for the respective periods.
• High Repeat Orders - The company customer relationships are primarily led by its ability to meet stringent quality and technical specifications for its customers in a timely and cost-effective manner. As a result, it has a history of high customer retention. Out of the total customers served in last 3 years, the repeat customer were more than 54% contributing more than 80% of the company’s total revenue.

Risks:

• High Import Operations- The company is heavily reliant on third-party suppliers for scrap materials, with approximately 75%–80% of its total scrap requirement being imported. For instance, in Fiscal 2025, international procurement constituted 76.90% of total raw material purchases. This high dependence on imports exposes the business to various risks, including supply disruptions, international price fluctuations, geopolitical instability in sourcing countries, and changes in trade policies or import duties, all of which could negatively impact operations and financial performance.
• High Revenue Concentration on Key Products and Top Customers – A substantial portion of the company's revenue is derived from its two main product categories: Lead & Lead Alloy Ingots (39.46%) and Copper & Copper Ingots (44.82%) of its revenue from operations in Fiscal 2025. This dependency makes the business vulnerable to any reduction in demand for these specific products. Furthermore, the company has a high concentration of revenue from its top 10 customers, who accounted for 58.40% of revenue in Fiscal 2025. As the company does not have long-term contracts with the majority of these customers, the loss of any one of them could adversely affect its revenues and profitability.
• Past Regulatory Actions and Pending Notice Against the Promoter- The Promoter, Mr. Kamlesh Jain, has faced four disciplinary actions from the Securities and Exchange Board of India (SEBI) in the past for violations of securities laws, including synchronised trading and non-disclosure of acquisitions, which resulted in penalties. More critically, there is a pending show-cause notice from SEBI dated July 21, 2025, alleging insider trading in the shares of another listed company. Any adverse outcome in this pending matter or future regulatory actions could negatively impact the company's reputation, business, and financial condition

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The company’s key products, such as lead and copper, enjoy strong demand, which supports promising growth prospects over the medium to long term. On the financial front, the company has delivered revenue growth well ahead of its peers. While its EBITDA and PAT margins are below industry averages, its ROCE and ROE are comparatively stronger. However, the debt-to-equity ratio is higher than the industry average, and the interest coverage ratio is relatively weaker. From a valuation perspective, the company is available at a P/E multiple of around 32x, compared to the industry average of 47x. Considering its healthy financial performance, reasonable valuation, and demand-driven product portfolio, we believe this offering merits a long-term subscription recommendation.