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Jain Resource Recycling IPO
Jain Resource Recycling Ltd
₹14,080 /64 sharesMinimum Investment
Jain Resource Recycling IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 24 Sep ‘25 - 26 Sep ‘25 | ₹14,080 | 64 | ₹220 - ₹232 |
| Issue Size | IPO Doc |
|---|---|
| 1250.00Cr | RHP PDF |
About Jain Resource Recycling
Founded in
1953
Managing director
Mr Kamlesh Jain
Parent organisation
Jain Resource Recycling Ltd
Strengths & Financials of Jain Resource Recycling
Strengths
Risks
Jain Resource Recycling has received credit ratings of CRISIL A/Stable for its long-term loans and CRISIL A1 for its short-term loans.
Jain Resource Recycling claims to have strategically located recycling facilities in SIPCOT Industrial Estate, Gummidipoondi, Chennai, spread across 26.94 acres. This centralised setup enables cross-facility utilisation of by-products, reducing wastage and improving operational efficiency. The company’s lead, copper, and aluminium recycling units are equipped with advanced technologies, including high-capacity refining furnaces and automatic casting lines, allowing them to handle a diverse range of scrap materials and achieve economies of scale. The proximity to key ports, including Chennai and Ennore Ports, further enhances logistics, enabling efficient raw material imports and finished product exports.
Jain Resource Recycling claims to have a strong global customer base, with exports to over 20 countries, including China, Singapore, South Korea, and the UAE. The company’s export revenue grew at a compound annual growth rate (CAGR) of 64.93 percent between FY23 and FY25, reflecting its expanding international presence. It also claims to have deep sourcing capabilities, importing materials from over 120 countries through strategically located traders, allowing for efficient procurement and cost advantages. These strong supplier relationships help ensure competitive pricing and timely delivery of raw materials.
Jain Resource Recycling claims to apply a hedging mechanism to manage commodity price risks, particularly for base metals traded on the LME. By using futures derivative contracts, the company locks in prices for raw materials and finished products, ensuring stable production costs despite price fluctuations. Additionally, the company monitors foreign currency exposure daily and enters into buy or forward contracts when liabilities exceed receivables. This strategy, combined with LME recognition for their branded lead products, helps Jain Resource Recycling maintain a resilient financial position in volatile markets.
The company is ISO 9001:2015 certified for its quality management systems, ISO 14001:2015 certified for its environmental management systems, and ISO 45001:2018 for its occupational health and safety management systems. It also has a laboratory accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL), ensuring compliance with ISO/IEC 17025:2017 for testing lead, copper, and aluminium.
The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 3,064.07 crore in FY23 to Rs 4,428.42 crore in FY24 and Rs 7,125.77 crore in FY25. PAT increased from Rs 91.81 crore in FY23 to Rs 163.83 crore in FY24 and Rs 223.29 crore in FY25.
The top five customers accounted for Rs 3,109.53 crore (43.64 percent) of the company’s revenue in FY25, Rs 1,971.25 crore (44.51 percent) in FY24, and Rs 977.65 crore (31.91 percent) in FY23. Furthermore, the top customer alone accounted for Rs 1,347.69 crore (18.91 percent) of the company’s revenue in FY25, Rs 968.02 crore (21.86 percent) in FY24, and Rs 259.95 crore (8.48 percent) in FY23. Any failure to retain these key customers or a loss of business from them could adversely affect the company’s business and financial standing.
The cost of copper sourced from suppliers accounted for Rs 3,265.34 crore (50.69 percent) of the company’s total cost of raw materials consumed in FY25, Rs 1,848.44 crore (45.71 percent) in FY24, and Rs 1,730.98 crore (62.50 percent) in FY23. The cost of lead sourced from suppliers accounted for Rs 2,399.66 crore (37.25 percent) of the company’s total cost of raw materials consumed in FY25, Rs 1,872.81 crore (46.31 percent) in FY24, and Rs 918.15 crore (33.15 percent) in FY23. Any sudden increase in the price of these raw materials could have an adverse impact on the company’s financial performance.
The company imports a significant portion of its raw materials from international markets such as the UAE, the US, and Kuwait, among others. They accounted for Rs 5,150.56 crore (76.90 percent) of the company’s total purchase of raw materials in FY25, Rs 3,295.77 crore (80.52 percent) in FY24, and Rs 2,065.22 crore (74.23 percent) in FY23. Any disruption in the supply chain could adversely affect the company’s ability to source materials on time and at acceptable terms, impacting its profitability and operations.
The company derives a significant portion of its revenue from the sale of refined lead and lead alloy ingots and copper and copper ingots. Lead and lead alloy ingots accounted for Rs 2,811.91 crore (39.46 percent) of the company’s revenue in FY25, Rs 2,076.23 crore (46.88 percent) in FY24, and Rs 1,070.25 crore (34.93 percent) in FY23. Copper and copper ingots accounted for Rs 3,193.88 crore (44.82 percent) of the company’s revenue in FY25, Rs 1,928.19 crore (43.54 percent) in FY24, and Rs 1,815.42 crore (59.25 percent) in FY23. A significant shift in the demand for these key products, or if customers start relying on other suppliers for such products, could adversely affect the company’s profitability and margins.
All recycling facilities and the segregating facility of the company are concentrated in South India, with facilities in SIPCOT Industrial Estate, Gummidipoondi, Chennai, and Annekollu Village, Krishnagiri District. Any adverse local factors, such as accidents, natural disasters, or regional economic and weather conditions could disrupt operations, causing delays in the transport of products and raw materials.
The company reported negative cash flow from investing activities amounting to Rs 25.97 crore in FY25, Rs 93.37 crore in FY24, and Rs 8.65 crore in FY23. This was primarily due to substantial capital expenditures for operational expansion. Additionally, negative cash flow from financing activities amounted to Rs 35.43 crore in FY25. The company also reported a decrease in cash and cash equivalents amounting to Rs 57.82 crore in FY25. If negative cash flows persist or worsen, it could impact the company's ability to operate and implement its growth plans, adversely affecting its financial performance and future prospects.
Jain Resource Recycling derived 60.39 percent of its revenue in FY25, 54.11 percent in FY24 and 51.63 percent in FY23 from exports and sales outside India. These foreign currency transactions, primarily in US dollars and euros, expose the company to exchange rate risks, which could adversely affect its financial performance as the company continues to expand its global operations. This needs to be professionally managed continuously.
The company has recorded a high employee attrition rate over the last three years. It stood at 24.60 percent in FY25, 26.21 percent in FY24, and 19.89 percent in FY23. The high attrition rate could negatively impact its operations if the company struggles to hire, train, and retain qualified employees, affecting business continuity, financial condition, and results of operations.
As of FY25, the company had contingent liabilities of Rs 21.74 crore. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition.
A significant portion of Jain Resource Recycling's export revenue is derived from China. It accounted for Rs 1,364.36 crore (31.70 percent) of the company’s export revenue in FY25, Rs 784.26 crore (32.73 percent) in FY24, and Rs 1,034.79 crore (65.41 percent) in FY23. Any political instability, civil disturbances, or hostilities between India and China could result in restrictions on exports, such as increased tariffs or changes in trade agreements, disrupting the company’s revenue streams.
The company, its promoter, directors, subsidiary, and key managerial personnel are involved in certain ongoing legal proceedings, including criminal and tax-related cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
Jain Resource Recycling is exposed to counterparty credit risk due to its open credit arrangements with customers, with payment terms generally between 10 and 15 days. As of FY25, the company had trade receivables of Rs 129.47 crore, which could lead to delays or defaults in payments by customers, adversely impacting cash flows and profitability.
As of July 31, 2025, the company had financial indebtedness of Rs 1,040.72 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.
Jain Resource Recycling Financials
*All values are in Rs. Cr
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Application Details of Jain Resource Recycling IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹220 - 232 | ₹2 Lakh |
| High Networth Individual | ₹220 - 232 | ₹2 - 5 Lakh |
For Jain Resource Recycling IPO, eligible investors can apply as Regular.