The IPO mania continues and today it is the turn fir Jain Resource Recycling to test the waters. Backed by the Jain Metal Group, the company has opened its three-day subscription window with a sizeable Rs 1,250 crore issue. But amid a crowded week of IPOs, does this one deserve your attention?
Let’s take a look at the 5 key factors to watch out for –
Jain Resource Recycling IPO: Key details of the issue
The issue size is set at Rs 1,250 crore, which includes a fresh issue of Rs 500 crore and an offer for sale of Rs 750 crore by existing shareholders.
This means while the company will raise funds for its own growth and debt repayment, a large part will also go into the pockets of early investors cashing out.
Jain Resource Recycling IPO: Price band and investment details
The company has fixed its IPO price band at Rs 220-Rs 232 per share. For retail investors, the minimum bid is one lot of 64 shares, which works out to Rs 14,848 at the upper end of the band.
If you are a small non-institutional investor, the entry point jumps to around Rs 2.1 lakh, while large NIIs will need to put in upwards of Rs 10 lakh.
Jain Resource Recycling IPO: Grey market trend
As of the latest, the grey market premium (GMP) of this company was hovering around Rs 25 per share. This indicates as per the trend a potential listing price near Rs 257. That is almost 11% higher than the issue price.
However, GMPs are only sentiment indicators and can change quickly once actual trading begins.
Jain Resource Recycling IPO: Business overview
Jain Resource Recycling operates three large facilities near Chennai with a production capacity of over 3 lakh tonnes per year. Its customer list features some heavyweights from diverse industries such as Vedanta, Luminous Power, Mitsubishi Corporation and Nissan Trading, among others.
Jain Resource Recycling IPO: When to expect listing
The IPO bidding window is open from September 24 to September 26. After the allotment process on September 29, successful bidders will see shares credited to their demat accounts on September 30. Trading on the NSE and BSE is set to begin on October 1.