Jain Resource Recycling Limited and Runwal Enterprises Limited Seek IPO Approval from SEBI
In an exciting development for the Indian capital market, Jain Resource Recycling Limited and Runwal Enterprises Limited have submitted their draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This move signals their intent to launch an initial public offering (IPO), a significant step in their growth journeys. Jain Resource Recycling, recognized as a frontrunner in non-ferrous metal recycling, is poised to make a substantial impact based on its impressive revenue performance over the past few fiscal years.
Jain Resource Recycling Limited IPO Overview
Jain Resource Recycling stands out as a dominant player in the non-ferrous metal recycling industry. According to financial insights from CRISIL, the company has recorded remarkable growth in revenue for 2022, 2023, and 2024. Their primary goal is to manufacture non-ferrous metal products through the recycling of scrap, offering a diverse product portfolio that includes:
- Lead and lead alloy ingots
- Copper and copper ingots
- Aluminium and aluminium alloys
Financial Highlights of Jain Resource Recycling’s IPO
The company is launching an IPO valued at ₹2,000 crore, which comprises a fresh equity share issuance of ₹500 crore alongside an offer for sale (OFS) totaling ₹1,500 crore. The OFS will feature:
- Up to ₹1,430 crore worth of shares from Kamlesh Jain, the company’s promoter.
- ₹70 crore in shares from Mayank Pareek, another selling shareholder.
The net proceeds from this offering are earmarked for settling portions of existing debts and addressing general corporate expenses. The Book Running Lead Managers facilitating this IPO include DAM Capital Advisors Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited, and PL Capital Markets Private Limited.
Runwal Enterprises Limited IPO Insights
Based in Mumbai, Runwal Enterprises is well-known for its residential and commercial projects, catering to affordable, mid-income, and luxury markets. The company’s significant presence in Mumbai’s real estate sector is underscored by a recent JLL Report, which illustrates its strong market position.
As of September 30, 2024, Runwal holds the second place for new project launches and sales, capturing 5.69% and 5.25% of the market share, respectively. Over this period, the firm has successfully completed 15 projects, is currently developing 25, and has 32 more in the pipeline. Financially, for the six months ending September 30, 2024, Runwal reported a consolidated revenue of ₹270.52 crore and a net profit of ₹25.53 crore.
Key Details of Runwal Enterprises’ IPO
Runwal’s upcoming IPO features a face value of ₹2 per share, with a new issuance amounting to ₹1,000 crore, without an offer-for-sale component. The allocation of funds from this fresh issue is planned as follows:
- ₹200 crore will be dedicated to repaying or prepaying some of the company’s existing loans.
- ₹450 crore will be invested in major subsidiaries, including Susneh Infrapark Private Limited, Runwal Residency Private Limited, and Evie Real Estate Private Limited. These funds will be used for debt repayments, financing new real estate acquisitions, and general corporate purposes.
The lead managers for this offering are ICICI Securities Limited and Jefferies India Private Limited, while MUFG Intime India Private Limited will act as the registrar.
As these two companies move forward with their IPO plans, they are set to attract significant attention from investors eager to capitalize on the expanding opportunities within India’s recycling and real estate sectors.
For more updates on upcoming IPOs, stay tuned and keep an eye out for detailed analyses and insights!
