CMR Green Technologies is set to launch its IPO from June 3 to June 5, with a grey market premium of around 33% indicating a potential listing price of Rs 255-256 per share. The IPO, entirely an offer for sale worth Rs 630.6 crore, has a price band of Rs 182-192 per share.
Market observers note that the IPO's grey market premium suggests robust investor interest, potentially leading to a strong listing. CMR Green Technologies, India's largest non-ferrous metal recycler by installed capacity, operates 13 manufacturing facilities and commands a 42%-45% market share in the cast alloy segment for the automotive industry. The company reported a revenue of Rs 6,666 crore in FY25, marking a 12% year-on-year increase, with a profit after tax of Rs 155 crore.
Ahead of the IPO, CMR Green raised Rs 188 crore from anchor investors, including domestic mutual funds and foreign institutional investors. However, brokerage reviews are mixed. Motilal Oswal highlights the company's leadership in aluminium recycling and its alignment with sustainability trends, while Swastika Investmart assigns a "Neutral" rating, citing concerns over customer concentration and thin margins.
The IPO arrives at a time when investor interest in sustainability-linked businesses is high, particularly in sectors like recycling and resource efficiency. The strong grey market sentiment will be closely watched to see if it translates into robust demand from both institutional and retail investors.
Background
CMR Green Technologies, as a leader in non-ferrous metal recycling, stands to benefit from the industry's shift towards sustainable and lower-carbon manufacturing solutions. The company's focus on recycled aluminium, which generates lower emissions compared to primary aluminium, aligns with global sustainability trends.
As the IPO unfolds, market participants will monitor subscription trends and investor response, especially given the current appetite for manufacturing and sustainability-focused businesses.
