Jain Resource Recycling made its entry on the stock exchanges today, October 1, with shares listing at a 14% premium over the issue price.
Let’s unpack how the issue played out, the demand it generated, and what the company brings to the table.
Key details of the issue
The public issue of Jain Resource Recycling opened between September 24 to September 26. Investors had the option to bid within a price band of Rs 220–232 per share.
The allotment process was wrapped up on September 29, setting the stage for today’s listing.
What Grey Market trends indicated
Ahead of listing, the IPO was trading with a grey market premium (GMP) of around Rs 11. This indicated at a modest potential listing gain of nearly 4.7% over the upper end of the price band. However, GMPs are not the official listing price and fluctuates based on the market sentiment.
Subscription snapshot
The IPO received bids for nearly 49.7 crore shares and was subscribed 16.76 times overall. Retail investors put in 3.81 times more bids than the shares reserved for them. Non-institutional investors (NIIs) subscribed 5.59 times.
Qualified institutional buyers (QIBs) led the charge with a 26.67 times subscription.
Fundraising and issue structure
The Rs 1,250 crore IPO was a mix of fresh issuance and an offer for sale (OFS). The fresh issue of 2.16 crore equity shares, worth Rs 500 crore, is aimed at reducing debt and funding general corporate purposes.
The OFS portion consisted of 3.23 crore shares worth Rs 750 crore.
Lead managers
Dam Capital Advisors acted as the book-running lead manager for the issue. Kfin Technologies handled the registrar responsibilities.