Jain Resource Recycling collects Rs 562 crore; IPO opens for subscription

New Delhi, Sep 24 (PTI) Jain Resource Recycling Ltd has mobilised a little over Rs 562 crore from anchor investors, ahead of its Initial Public Offering (IPO) opening for subscription.

The institutions that participated in the anchor round included HDFC Mutual Fund (MF), Axis MF, Motilal Oswal MF, Abu Dhabi Investment Authority, TATA AIA Life Insurance, ICICI Lombard General Insurance, Edelweiss Life Insurance and Citigroup Global Markets Mauritius, according to a circular uploaded on the BSE website late Tuesday night.

As per the circular, Jain Resource Recycling has allocated 24,245,689 shares to 40 funds at Rs 232 apiece. This takes the transaction size to Rs 562.5 crore.

The IPO, with a price band of Rs 220 to Rs 232 per share, will be available for subscription during September 24 to 26. At the upper end, the company is valued over Rs 8,000 crore.

The Tamil Nadu-based company's IPO comprises a fresh issue of equity shares aggregating to Rs 500 crore and an Offer For Sale (OFS) valued at Rs 750 crore.

The OFS comprises sale of shares worth Rs 715 crore by promoter Kamlesh Jain and Rs 35 crore by shareholder Mayank Pareek.

Proceeds from the fresh issue will be utilised for payment of debt and general corporate purposes.

Jain Resource Recycling is primarily focused on the manufacturing of non-ferrous metal products through the recycling of non-ferrous metal scrap. The company's product portfolio comprises lead and lead alloy ingots; copper and copper ingots; and aluminium and aluminium alloys.

The company partnered with Ikon Square Ltd UAE for the purposes of setting up its gold refining facility in Sharjah UAE. It is also engaged in the trading of non-ferrous metals and other commodities.

According to the company, 75 per cent of the offer size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.Further, investors can bid for 64 shares in multiples thereof.

DAM Capital Advisors, ICICI Securities, Motilal Oswal Investment Advisors and PL Capital Markets are the book-running lead managers to the issue. Jain Resource Recycling is expected to list on the stock exchanges on October 1. PTI SP DR DR