Tamil Nadu-based Jain Resources Recycling Limited (JRRL), a subsidiary of Jain Metal Group, has become the fifth company from Chennai to raise funds through an IPO in 2025 after receiving approval from the Securities and Exchange Board of India (SEBI) on Tuesday. JRRL and 12 other firms recently received SEBI’s nod to float public issues.
Four other state-based firms — Lalithaa Jewellery, Veritas Finance Ltd, CIEL HR, and Milky Mist Dairy Food Ltd — have also filed draft red herring prospectuses (DRHP) with SEBI.
Earlier this year, four companies from Chennai — Dr Agarwal Health Care Ltd, Sattva Engineering Construction, LGT Business Connextions Ltd, and FlySBS Aviation Ltd — were listed on the stock exchanges. Of these, Sattva debuted on Wednesday, while Sattva, LGT and FlySBS were listed under the SME category.
“Until now, companies from South India, particularly Tamil Nadu, were seen as conservative. With IPO markets booming, more investors are coming in. The entry of second- and third-generation leaders is also driving corporates to tap public markets. Moreover, investors see southern companies as attractive due to their honest management and stronger governance,” said Ambareesh Baliga, independent equity research analyst.
JRRL, engaged in non-ferrous metal recycling, reported a revenue of Rs4,485 crore in FY24, up from Rs3,107 crore in FY23. It plans to raise Rs2,000 crore through the IPO, including a fresh issue of Rs500 crore and an offer for sale (OFS) of Rs1,500 crore. Promoter Kamlesh Jain leads the company, whose portfolio includes lead, copper, and aluminium products. JRRL is also among the few Indian recycling firms with its lead ingot brand registered on the London Stock Exchange.
Other IPO-bound Tamil Nadu cos
Lalithaa Jewellery filed draft papers in June for a Rs 1,700-crore IPO (Rs1,200 crore fresh issue + Rs 500 crore OFS by promoter M Kiran Kumar Jain). The firm reported revenue of Rs16,797 crore and profit of Rs358.3 crore in FY24. Despite facing SEBI scrutiny over governance, it has not withdrawn its DRHP.
Veritas Finance Ltd, an NBFC founded by Arulmany Duraisamy, filed in January for a ₹2,800-crore IPO (Rs 600 crore fresh issue + Rs 2,200 crore OFS). It reported revenue of Rs1,557.40 crore and PAT of Rs 295.11 crore in FY25, with 7,795 employees across 438 branches.
CIEL HR, an HR solutions provider, received SEBI approval in February for a Rs 335-crore IPO, but has deferred the launch until market conditions improve. It posted revenue of ₹1,504.5 crore and profit of Rs 14.67 crore in FY25, up 35% from FY24.
Milky Mist Dairy Food Ltd, based in Erode, filed in July for a ₹2,035-crore IPO (Rs1,785 crore fresh issue + Rs 250 crore OFS). Founded by T Sathish Kumar in 1997, it is one of India’s largest value-added dairy firms, best known for paneer. In FY25, it posted revenue of ₹1,907.20 crore, profit of Rs46 crore (up from Rs19 crore), and an EBITDA margin of 13.2%.