CMR Green Technologies IPO Sees Strong Demand on Listing Day, Subscribed 2.45 Times

CMR Green Technologies IPO Sees Strong Demand on Day 1

The initial public offering (IPO) of CMR Green Technologies witnessed a solid demand from both retail and non-institutional investors on its first day of bidding, June 03. The IPO, which remains open until Friday, June 05, received bids for 5.67 crore shares against the total offer of 2.30 crore shares, resulting in an overall subscription of 2.46 times by the end of Day 1, according to exchange data.

The non-institutional buyer's category saw the highest interest, with a subscription of 5.68 times, followed by retail buyers at 2.47 times. The Qualified Institutional Buyer (QIB) category was subscribed modestly at 0.03 times, as per the exchange data. Ahead of the issue, the company raised ₹188.4 crore from anchor investors, which included marquee institutions such as SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, and Goldman Sachs.

Key IPO Details

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The initial public offering, valued at ₹630.88 crore at the upper end of the price band of ₹192, is entirely an offer for sale (OFS), with no fresh issue component. The IPO comprises an offer for sale of up to 3.28 crore equity shares by promoters and an investor selling shareholder. All proceeds from the issue will go directly to the selling shareholders. Mohan Agarwal, Gauri Shankar Agarwal HUF, and Mohan Agarwal HUF are the promoters and promoter group selling shareholders, while Global Scrap Processors is the investor selling shareholder.

The IPO has set a lot size of 78 shares, translating into a minimum investment requirement of ₹14,976 for retail investors. CMR Green Technologies' strong market position and capacity advantage are likely to support its listing. According to its red herring prospectus (RHP), citing an ICRA report, it held the highest market share in the Indian secondary aluminum market in terms of revenue from operations in FY25 among its peer companies.

The company manufactures recycled aluminum alloys in ingot and liquid form, zinc alloy ingots, dross, and segregated furnace-ready scrap of stainless steel, copper, brass, zinc, lead, and magnesium, among other products. As of today, the grey market premium (GMP) for the CMR Green Technologies stands at ₹67 per share, suggesting that the stock is likely to list above its issue price. Based on this GMP and the upper price band, the estimated listing price for the stock stood at ₹259, reflecting a 35% premium.

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