Investors are closely tracking the GMP of CMR Green Technologies after the company's IPO drew overwhelming demand and is now set for one of the strongest debuts this year in an otherwise muted primary market so far this year. The company is commanding a grey market premium (GMP) of about 36% ahead of its stock market debut.
At the current GMP of around Rs 69, the stock is expected to list near Rs 261 per share, compared with its issue price of Rs 192, implying a potential listing gain of nearly 36%. The stock is scheduled to debut on the NSE and BSE on June 10, making it the first mainboard IPO to hit the market in nearly a month.
The Rs 631 crore issue, which was entirely an offer for sale (OFS), received a strong response from investors across categories. The IPO was subscribed 127.07 times, with qualified institutional buyers (QIBs) leading demand at 270.46 times subscription. The non-institutional investor (NII) portion was subscribed 172.35 times, while the retail category was booked 27.08 times.
The company had also raised Rs 188 crore from anchor investors ahead of the issue.
Analysts said the robust demand reflects investor confidence in CMR Green Technologies' position as India's largest non-ferrous metal recycler and the biggest player in the domestic secondary aluminium market by revenue.
Arihant Capital said the company's leadership in aluminium recycling, and its installed capacity of more than four times that of its nearest domestic competitor augurs well. The brokerage also pointed to the company's dominant position in the automotive cast alloy segment, where it commands an estimated market share of 42-45%, and recommended subscribing to the IPO.
SBI Securities said CMR enjoys significant scale advantages with an installed capacity of 4.7 lakh tonnes per annum and sees growth opportunities from expansion into wrought aluminium products and increasing demand for recycled metals. It also maintained a "Subscribe" rating.
Deven Choksey Research noted that the company is well positioned to benefit from long-term themes such as electric vehicle adoption, rising aluminium intensity in automobiles, decarbonisation and India's circular economy push. The brokerage recommended subscribing to the issue.
CMR Green Technologies manufactures recycled aluminium alloys, aluminium billets, zinc alloy ingots and other recycled metal products. Its customer base includes leading automotive manufacturers and component suppliers such as Maruti Suzuki, Bajaj Auto, Honda Cars India and Hero MotoCorp.
The company operates 13 recycling facilities across India and has a diversified scrap sourcing network spanning domestic and international markets.
Financially, CMR reported revenue of Rs 6,697 crore and net profit of Rs 155 crore in FY25. For the nine months ended December 2025, it posted revenue of Rs 6,291 crore and profit after tax of Rs 162.4 crore, indicating continued operational momentum.
With strong institutional participation, and a GMP of 36%, investors expect CMR Green Technologies to deliver one of the stronger IPO debuts seen in recent months. However, as with all grey market indicators, the final listing performance will depend on broader market conditions and investor sentiment on listing day.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
