The J B Ecotex IPO has taken its first step. The Surat company filed its draft red herring prospectus, the DRHP or draft prospectus every company sends SEBI before an IPO, on 28 September 2026. The issue is a fresh issue of ₹400 crore plus an offer for sale of up to 1.29 crore shares by nine promoters.
Of the ₹400 crore the company raises for itself, ₹320 crore is set aside to repay borrowings of J B Ecotex and its subsidiary. The rest goes to general corporate purposes. So four rupees in every five of the new money are meant to cut debt, not to build capacity.
What the company does
J B Ecotex was incorporated in 2012. It collects used PET bottles and other PET waste and turns them into recycled PET flakes, fibre and granules. Those go into textiles, food-grade packaging and other packaging. The DRHP describes it as the second-largest PET recycling company in India, with installed capacity of 180,360 tonnes a year and the only one running both mechanical and chemical recycling.
The scale is easier to picture in bottles. The company recycled 3.52 billion plastic bottles in FY26, which works out to 9.67 million a day. It has two plants at Dhamdod near Surat, 7.20 MW of wind capacity and 6.60 MW of solar. It lists more than 700 customers across India and 25 countries, including Varun Beverages and Moon Beverages.
The key facts so far
| Item | Detail |
|---|---|
| DRHP filed | 28 September 2026 |
| Fresh issue | ₹400 crore |
| Offer for sale | Up to 1.29 crore shares by promoters |
| Face value | ₹5 per share |
| Debt repayment from proceeds | ₹320 crore |
| Possible pre-IPO placement | Up to ₹80 crore |
| Lead managers | Motilal Oswal Investment Advisors, JM Financial |
| Registrar | MUFG Intime India |
| Listing | BSE and NSE |
Two numbers in that table are still missing, and they are the ones you will care about most. There is no price band yet, so the OFS of 1.29 crore shares has no rupee value yet and the total issue size is not fixed. A DRHP never carries the band. That comes later, in the red herring prospectus, days before the IPO opens.
One more line to read carefully. The company may do a pre-IPO placement of up to ₹80 crore. If it does, that amount is cut from the ₹400 crore fresh issue, so the public issue would shrink.
Revenue grew fast, profit did not
Revenue from operations was ₹827.6 crore in FY26, against ₹527.3 crore in FY24. That is growth of about 57 per cent in two years. Net profit over the same two years moved from ₹21.1 crore to ₹22.4 crore, a rise of roughly 6 per cent.
Put plainly, the company sold a lot more without keeping much more. Recycled PET is a commodity business, and margins follow bottle collection costs and resin prices. When the RHP arrives with year-by-year margins and the price band, that gap between revenue growth and profit growth is the first thing to check.
What happens next
SEBI now reviews the draft. Its observations usually take one to three months, and companies sometimes refile with changes. Once the observation letter comes, J B Ecotex has 12 months to launch. Only after that stage will there be an open date, a price band, a lot size and a minimum application amount.
Until then the IPO stays on the watchlist. You can follow it and every other filing on our upcoming mainboard IPO tracker, and see how earlier issues fared after listing on the mainboard listing performance table. We covered a similar debt-repayment filing this week when Royal Chain filed its DRHP for ₹1,000 crore.
