The Rs 631 crore IPO of CMR Green Technologies opened for subscription today and witnessed healthy investor participation, with the issue subscribed 1.87 times as of Day 1 against the 2.30 crore shares on offer. The non-institutional investor (NII) segment led the demand, garnering 3.93 times subscription, while the retail category was subscribed 2.03 times.
Market sentiment remains upbeat, reflected in the grey market premium (GMP) of around 33%. Based on the upper end of the price band at Rs 192 per share, the GMP indicates a potential listing price of approximately Rs 255–Rs 256.
The IPO will close on June 5. The Rs 630.6 crore issue is entirely an offer-for-sale (OFS), meaning the company will not receive any funds from the proceeds. The price band has been fixed at Rs 182–Rs 192 per share, and investors can bid in lots of 78 shares.
CMR Green Technologies IPO Subscription Details
As of 3:25 PM on Day 1, the CMR Green Technologies IPO had been subscribed 1.87 times overall.
The retail investor segment witnessed healthy participation, with Retail Individual Investors (RIIs) subscribing 2.03 times their allotted quota of 1.14 crore shares.
Demand was particularly strong in the Non-Institutional Investor (NII) category, which was subscribed 3.93 times against the 49.07 lakh shares reserved for the segment.
In contrast, Qualified Institutional Buyers (QIBs) showed limited participation on Day 1, bidding for 2% of the 65.42 lakh shares allocated to them.
About CMR Green Technologies
CMR Green Technologies is India’s largest non-ferrous metal recycler by installed capacity and held the highest market share in the domestic secondary aluminium segment in FY25, according to an ICRA report cited in the company’s prospectus.
The company operates 13 manufacturing facilities and produces recycled aluminium alloys, aluminium billets, zinc alloy ingots, and other recycled metal products. It also holds an estimated 42%–45% share in the cast alloy segment used by the automotive industry.
The business is well positioned to benefit from the global shift toward recycled metals, as industries increasingly focus on low-carbon manufacturing solutions. As per the ICRA report, recycled aluminium emits significantly lower greenhouse gases compared to primary aluminium production and requires much lower capital investment.
On the financial front, the company reported operating revenue of Rs 6,666 crore in FY25, reflecting a 12% year-on-year growth. Profit after tax stood at Rs 155 crore, recovering from a loss in FY24, which was primarily due to a one-time goodwill impairment charge.
Ahead of the IPO, CMR Green Technologies also raised Rs 188 crore from anchor investors, including participation from domestic mutual funds, insurance companies, and foreign institutional investors.
Brokerages Review
Analysts have offered mixed views on the issue. Motilal Oswal highlighted CMR Green's leadership position in the aluminium recycling industry, its dominant market share and exposure to long-term sustainability and decarbonisation trends. The brokerage noted that the company is benefiting from growing demand for recycled aluminium and expansion into new segments such as extrusion and rolled alloys.
Swastika Investmart has assigned a "Neutral" rating to the IPO. The brokerage said the valuation of around 27 times FY25 earnings appears reasonable relative to peers and acknowledged the company's industry leadership and strong market position.
However, it flagged concerns around the issue being a pure OFS, customer concentration risks, dependence on a few key clients and relatively thin operating margins. Swastika said high-risk investors may consider the issue primarily from a listing gains perspective.
The IPO comes at a time when investor appetite for manufacturing and sustainability-linked businesses remains healthy, particularly in sectors linked to recycling, resource efficiency and the circular economy.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
