JB Ecotex has filed its draft red herring prospectus with SEBI, as the company seeks to raise funds through its initial public offering (IPO). The issue comprises fresh equity worth Rs 400 crore and an offer for sale component of 1.29 crore equity shares of face value Rs 5 each.

​Ahead of its opening, the company may also consider a Pre-IPO placement of Rs 80 crore, which may be deducted from the fresh issue. Motilal Oswal Investment Advisors and JM Financial have been appointed as the merchant bankers for the issue, while MUFG Intime India is the registrar.

​JB Ecotex IPO: Utlisation of proceeds

​Of the total capital raised via fresh equity shares, Rs 320 crore shall be deployed towards the repayment/pre-payment of the debt availed by the company and its subsidiaries. The remaining proceeds will be utilised for general corporate purposes, which include funding business development, strengthening marketing capabilities, funding capital expenditure and so on, the company said in its DRHP.

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​JB Ecotex IPO: Key risk factors

​The Gujarat-based company’s IPO is vulnerable to several risks, some of which include dependency on sale of Recycled Polyester Staple Fibre (RPSF) for revenue generation. Over the past three fiscal years, RPSF sales have contributed more than 55% to the total revenue from operations.

​Risks pertaining to sourcing of raw materials, high dependency on domestic markets, shutdown of manufacturing facilities in Gujarat, and obtainence of statutory and legal approvals may adversely affect the company’s operations and cash flows.  

JB Ecotex IPO: FY26 result

For the financial year ending March 30, 2026, the company reported its restated profit at Rs 22.4 crore, up 9% year-on-year from Rs 20.5 crore reported during the same period last year.

Its consolidated revenue from operations for FY26 stood at Rs 827.6 crore, advancing over 15% YoY against Rs 716.2 crore reported in FY25.

JB Ecotex IPO: Product portfolio

JB Ecorex key product portfolio comprises RPSF, Food Grade rPET Resins, rPET Flakes, and Chemically Recycled Resins. The company uses a bottle-to-bottle recycling process to transform plastic bottles into high-quality materials for new bottles.

The company aims to deepen its presence in the mentioned segments