CMR Green Technologies IPO Sees Strong Subscription on Day One, Possible Listing Gain Indicated

CMR Green Technologies IPO Day 1 Sees Strong Demand

The initial public offering (IPO) of CMR Green Technologies, a leading non-ferrous metal recycling company, has begun its public subscription process on June 3. The offer will close on June 5, with an issue size of ₹630.88 crore, entirely an offer for sale (OFS) with no fresh issue component. Under the offer, promoters and an investor shareholder, Global Scrap Processors, will collectively sell up to 3.28 crore equity shares.

The IPO has been priced in the range of ₹182-192 per share, with investors able to bid for a minimum of 78 shares, requiring an investment of ₹14,976 at the upper end of the price band. Notably, the company has already raised ₹188.4 crore from anchor investors ahead of its IPO, with an allotment of 98.14 lakh equity shares to 18 anchor investors at ₹192 per share.

As of the current grey market premium (GMP), CMR Green Technologies IPO GMP today is ₹63, indicating that shares of the company are trading ₹63 above the upper end of the price band. This has led to speculation that the company's listing could occur at ₹255, signalling a listing gain of nearly 33%. This is the highest GMP so far for the company, while the lowest was ₹24.

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CMR Green Technologies is among India's largest non-ferrous metal recyclers, holding the highest market share in India's secondary aluminium market by revenue in FY25 among its peer group, according to its red herring prospectus and an ICRA report. The company also enjoys a significant scale advantage, with installed capacity nearly four times that of its closest domestic competitor in the recycled aluminium segment.

The company's product portfolio includes recycled aluminium alloys in ingot and liquid form, zinc alloy ingots, dross, and furnace-ready scrap of stainless steel, copper, brass, zinc, lead, and magnesium, among other products.