Surat-based J B Ecotex Ltd has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise funds through an Initial Public Offering. The proposed IPO comprises a fresh issue of up to ₹400 crore and an Offer-for-Sale (OFS) of up to 1.29 crore equity shares by promoters. According to The Financial Express, the company may also raise up to ₹80 crore through a Pre-IPO Placement, which will be deducted from the fresh issue size if completed. Of the fresh issue proceeds, ₹320 crore will be used for repayment or pre-payment of outstanding borrowings by the company and its material subsidiary, while the remaining funds will be utilized for general corporate purposes including funding business development, strengthening marketing capabilities, and capital expenditure. Motilal Oswal Investment Advisors and JM Financial are serving as the book-running lead managers, while MUFG Intime India is the registrar, with the equity shares proposed to be listed on both NSE and BSE.
J B Ecotex, incorporated in 2012, operates as a Surat-based PET recycling company with 180,360 tonnes installed capacity as of August 31, 2026, making it the second-largest PET recycling company in India according to the 1Lattice Report. As reported by The Financial Express, the company recycles PET bottles and waste to manufacture recycled PET products primarily used in textiles, food-grade packaging and other packaging applications. The company's product portfolio includes recycled polyester staple fibre (RPSF), food-grade recycled PET resins, recycled PET flakes and chemically recycled resins, and operates two manufacturing facilities in Dhamdod, Surat. The company stands out as the only company in India with both mechanical and chemical PET waste recycling capabilities and was one of two companies in India with commercial-scale chemical recycling capabilities as of August 31, 2026. The company has also filed a patent application for its proprietary chemical recycling technology, further strengthening its competitive position in the recycling sector.
According to The Financial Express, J B Ecotex reported consolidated revenue from operations of ₹827.6 crore in FY26, compared with ₹716.2 crore in FY25, representing significant growth of over 15% year-on-year. The company's restated profit stood at ₹22.4 crore in FY26, up 9% from ₹20.5 crore in FY25. The IPO will be conducted through the book-building process with not more than 50% allocation to Qualified Institutional Buyers, while not less than 15% and 35% will be reserved for non-institutional bidders and retail individual bidders respectively.
As reported by The Financial Express, J B Ecotex has demonstrated significant operational scale, recycling 31,244.83 million PET bottles between FY16 and FY26, with over 3,528.44 million plastic bottles recycled in FY26 alone, averaging more than 9.67 million bottles per day. As of March 31, 2026, the company serves more than 700 customers across India and 25 other countries, with key customers including Varun Beverages Ltd and Moon Beverages Ltd. The OFS will comprise shares sold by promoters, including Jitendrakumar Fulchand Arya, Ayodhyaprasad Jugalkishore Singhal, Rajesh Ramniwas Gupta, Vishal Kejriwal, Ramdas Laxminarayan Jindal, Himanshu Surendra Jariwala, Hemant Vimalkumar Dhandharia, Monika Rajesh Gupta and Sajjan Kumar Kejriwal.
According to The Financial Express, the Gujarat-based company's IPO is vulnerable to several key risks. The company's revenue generation is heavily dependent on Recycled Polyester Staple Fibre (RPSF) sales, which have contributed more than 55% to total revenue from operations over the past three fiscal years. Additional risks include dependency on raw material sourcing, high dependency on domestic markets, potential shutdown of manufacturing facilities in Gujarat, and obtaining statutory and legal approvals, which may adversely affect the company's operations and cash flows.
