IPO Watch: Jain Resource Recycling, Runwal Enterprises files draft papers with SEBI for IPO

Jain Resource Recycling Limited, and Runwal Enterprises Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Jain Resource Recycling stands as India’s leading and most rapidly expanding business in the non-ferrous metal recycling sector, based on revenue figures for fiscal years 2024, 2023, and 2022, according to CRISIL. The primary focus of Jain Resource Recycling is to produce non-ferrous metal products by recycling non-ferrous metal scrap. The company's range of products includes lead and lead alloy ingots; copper and copper ingots; and aluminium and aluminium alloys.

Jain Resource Recycling IPO Details

The public offering, totaling ₹2,000 crore, includes a fresh issuance of equity shares amounting to ₹500 crores and an offer for sale (OFS) totaling ₹1,500 crores.

The offer for sale includes equity shares worth up to ₹1,430 crore from Kamlesh Jain (promoter selling shareholder) and equity shares valued at ₹70 crore from Mayank Pareek (other selling shareholder). Kamlesh Jain serves as the promoter of the company. The company intends to allocate the net proceeds for pre-payment or scheduled repayment of a section of its outstanding borrowings and for general corporate purposes.

The Book Running Lead Managers for the offering are DAM Capital Advisors Limited, ICICI Securities Limited, Motilal Oswal Investment Advisors Limited, and PL Capital Markets Private Limited.

Runwal Enterprises, based in Mumbai, focuses on residential developments that serve the affordable, mid-income, and luxury markets, as well as commercial properties, retail centers, and educational institutions.

The company is a well-established name in the sector and has a significant foothold in Mumbai, as highlighted by a JLL Report referenced in the DRHP.

As of September 30, 2024, the firm holds the second position in both new project launches and sales, capturing market shares of 5.69% and 5.25%, respectively, from January 2019 to September 2024. During this timeframe, it has completed 15 projects, has 25 currently under development, and has 32 more planned for the future.

For the six-month period ending September 30, 2024, the revised consolidated revenue from operations and net profit amounted to ₹270.52 crore and ₹25.53 crore, respectively.

Runwal Enterprises IPO Details

The IPO, which has a face value of ₹2 each, involves a new issuance totaling ₹1000 crore with no element of offer-for-sale.

The funds from this fresh issue will be allocated as follows: ₹200 crore will be used to repay or prepay, either in full or in part, certain existing borrowings of the company; ₹450 crore will be directed to investments in its major subsidiaries, including Susneh Infrapark Private Limited and Runwal Residency Private Limited, as well as its subsidiary, Evie Real Estate Private Limited, for the purposes of repaying or prepaying all or part of their outstanding debts; financing the acquisition of prospective real estate projects; and addressing general corporate needs.

The book-running lead managers for this offering are ICICI Securities Limited and Jefferies India Private Limited, while MUFG Intime India Private Limited serves as the registrar for the offer.

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