CMR Green Technologies IPO Sees Substantial Demand on Third Day of Booking

CMR Green Technologies IPO Sees Overwhelming Response from Investors

The initial public offering (IPO) of CMR Green Technologies, which was fully booked on the first day, continued to attract strong investor demand through the final day of bidding. The issue was oversubscribed by more than 100 times, as all investor categories witnessed robust participation.

The Qualified Institutional Buyers (QIB) portion of the issue was oversubscribed by 270 times, while the Non-Institutional Investors (NII) segment booked 172 times. The retail segment also saw strong enthusiasm, with subscriptions reaching 27 times. As a result, the issue received bids for ₹292 crore as against ₹2.30 crore in offer, resulting in a subscription rate of 127 times.

Ahead of the issue, the company raised ₹188.4 crore from anchor investors. Some of the marquee institutions that participated in the anchor book included SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, and Goldman Sachs.

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CMR Green Technologies IPO Details

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.

The promoters and promoter group selling shareholders include Mohan Agarwal, Gauri Shankar Agarwal HUF, and Mohan Agarwal HUF, while Global Scrap Processors is the investor selling shareholder.

CMR Green Technologies' GMP Signals a Strong Listing

Read also: Hexagon Nutrition IPO Fully Subscribed on First Day with Strong Demand from Retail and Non-Institutional Investors

As of today, the grey market premium (GMP) for CMR Green Technologies stands at ₹77 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 ₹269, reflecting a 40% premium.

However, it's essential to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

About CMR Green Technologies

The company is among the leading non-ferrous metal recyclers in India. 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.

CMR Green Technologies also enjoys a significant capacity advantage over domestic peers, with an installed capacity nearly four times that of its closest competitor in the domestic recycled aluminum segment. 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.