Half-century for Ashish Kacholia: Jain Resource Recycling is 50th stock, stake now worth Rs 128 crore

Ace investor Ashish Kacholia has hit a half-century with the addition of a new stock to his portfolio in the quarter ended September. He picked up Jain Resource Recycling, a smallcap stock that made its market debut on October 1. According to the company’s Red Herring Prospectus (RHP), the shares were allotted to Bengal Finance & Investment Pvt Ltd — an entity associated with Kacholia, in a pre-IPO offer. With this investment, he figures among the top 10 shareholders of the company.

Following the company’s listing, Ashish Kacholia’s stake stands at 1.14%, representing 39,16,875 equity shares, according to BSE shareholding data for the September quarter.

Shares of Jain Resource Recycling were listed at a 14% premium at Rs 265 over the IPO price of Rs 232. The stock is already up 41% over the issue price at Rs 326.90 and settled with a 5% uptick today.

The Rs 1,250 crore IPO, which ran between September 24 and September 26, was a mix of a fresh issue of Rs 500 crore and an offer for sale worth Rs 750 crore. The response from investors was strong, with the issue subscribed 16.8 times overall.

Institutional buyers drove the bulk of demand, subscribing nearly 27 times their reserved portion. Non-institutional investors subscribed 5.6 times, while retail investors came in at 3.8 times. Ahead of the issue, the company had also raised Rs 562.5 crore from anchor investors, a commitment that added to the confidence.

Also Read: Eternal block deal: Goldman Sachs offloads Rs 355 cr worth of shares, BofA Securities steps in as buyerJain Resource Recycling is engaged in recycling and manufacturing non-ferrous metals such as lead, copper and aluminium. The company operates three recycling facilities near Chennai and also has a gold refining unit in the UAE through a subsidiary.Its customer base includes large domestic and global names such as Vedanta, Luminous Power, Mitsubishi Corporation and Nissan Trading. With exports to markets like Singapore, China, Japan and South Korea, the company has built a footprint beyond India in just three years of operations.

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The current value of Kacholia’s holding in the company is around Rs 128 crore.

Fondly called the ‘Big Whale’, Kacholia publicly holds 50 stocks with a net worth of over Rs 2,894 crore, according to Trendlyne. Other stocks held by Kacholia include Brand Concepts, Agarwal Industrial, Jyoti Structures, Man Industries, Tanfac Industries, Thomas Scott, Xpro, Shaily Engineering, Safari Industries, Faze Three and Balu Forge.

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