CMR Green Technologies Makes Public Debut: IPO Details and Analysis Available

CMR Green Technologies IPO Opens for Subscription on Wednesday

The CMR Green Technologies Initial Public Offering (IPO) is set to open for public subscription from Wednesday, 3 June to Friday, 5 June. The company has fixed a price band of ₹182-192 per share for the IPO.

Strong Institutional Investor Response

CMR Green Technologies received a strong institutional investor response ahead of its public issue, with the company raising ₹188.44 crore through its anchor book on Tuesday, 2 June. The company allotted 98.14 lakh equity shares to 18 anchor investors at ₹192 per share. Leading domestic institutional investors that participated in the anchor round include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, and Goldman Sachs. Other investors in the anchor book included 360 One Equity Opportunity Fund, Abakkus Growth Fund, BNP Paribas, Citigroup Global Markets Mauritius, and Susquehanna Pacific.

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IPO Details

The CMR Green Technologies IPO has fixed a lot size of 78 equity shares, with investors able to bid in multiples of 78 shares thereafter. As per regulatory requirements, up to 50% of the issue has been reserved for Qualified Institutional Buyers (QIBs), while at least 15% is allocated to Non-Institutional Investors (NIIs) and at least 35% to retail investors. The company has also earmarked shares worth ₹2.5 crore for eligible employees, who may receive the shares at a discount to the issue price.

Listing Schedule

According to the tentative schedule, the CMR Green Technologies IPO allotment is expected to be finalised on 8 June, while refunds for unsuccessful applicants and credit of shares to successful bidders' demat accounts are likely to take place on 9 June. The CMR Green Technologies share listing is tentatively scheduled for 10 June, with the stock expected to debut on both the BSE and NSE.

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Grey-Market Premium

The CMR Green Technologies IPO GMP today is ₹63. Considering the upper end of the IPO price band and the current grey-market premium, the estimated listing price of CMR Green Technologies shares is ₹255 apiece, which is 32.81% above the IPO price of ₹192.

Brokerage Recommendations

SBI Securities has recommended subscribing to the CMR Green Technologies IPO, citing the company's leadership position in the non-ferrous metal recycling industry and favourable long-term sector prospects. According to the brokerage, CMR Green Technologies is the largest player by capacity in India's aluminium recycling industry and is well-positioned to benefit from growing demand for recycled metals.

Swastika Investmart has assigned a 'Neutral' rating to the CMR Green Technologies IPO, highlighting both the company's industry leadership and certain business risks. According to the brokerage, CMR Green Technologies enjoys the largest recycling capacity among its peers and has established itself as a preferred partner within the industry, positioning it well to benefit from the growing demand for recycled metals.

IPO Details

The IPO consists solely of an offer-for-sale (OFS) of 3.28 crore equity shares by current promoters and investors, without any component of a fresh issue. Consequently, the company will not obtain any funds from the IPO, and the capital raised will be directed entirely to the selling shareholders. Within the OFS, promoters Mohan Agarwal, Gauri Shankar Agarwala HUF, and Mohan Agarwal HUF will sell 64.59 lakh shares together. Investor Global Scrap Processors will be responsible for selling the bulk of approximately 2.6 crore shares.

Merchant Bankers

Equirus Capital, ICICI Securities, and Motilal Oswal Investment Advisors have been selected as the merchant bankers to oversee the CMR Green Technologies IPO.