India's largest non-ferrous metal recycler by installed capacity, CMR Green Technologies, will open its initial public offering (IPO) for subscription on June 3. The issue worth Rs 631 will remain open for subscription till June 5. The price band for this IPO has been set at Rs 182 to Rs 192 per share.
Retail investors can apply for at least a single lot size of 78 shares, requiring an investment of Rs 14,976 (at the upper price end). For small Non-Institutional Investors (NIIs), the bid size is 14 lots (1,092 shares), translating to a minimum investment of Rs 2,09,664. For big NIIs, the application size is 67 lots, costing Rs 10.03 lakh.
The allotment of shares for successful bidders is expected on June 8, while the tentative listing date on NSE and BSE is June 10. Equirus Capital Pvt. Ltd. is the book running lead manager and KFin Technologies is the registrar of this issue.
Here are 10 key things to know its Red Herring Prospectus ahead of the issue opening tomorrow.
1. It's A Pure Offer For Sale
The IPO consists entirely of an offer for sale (OFS) of up to 3.29 crore shares. There is no fresh issue component, which means the company itself will not receive any proceeds from the IPO for expansion, debt repayment or working capital.
2. A Private Equity Investor Is Making A Large Exit
Global Scrap Processors Ltd is selling up to 2.64 crore shares, accounting for more than 80% of the shares on offer. The investor currently owns 13.05% of the company.
3. CMR Is Betting On India's Recycling Boom
The company describes itself as the leading non-ferrous metal recycler in India by installed capacity and the largest player in the domestic secondary aluminium market by revenue. It had an installed aluminium recycling capacity of 4.61 lakh tonnes per annum as of March 2025 and ranks among the larger global aluminium recyclers.
4. It Dominates A Key Automotive Niche
CMR claims a 42-45% market share by volume in India's cast-alloy automotive segment. The company's fortunes are therefore closely tied to trends in vehicle production and auto component demand.
5. Revenue Growth Has Improved
On a consolidated basis, revenue from operations rose to Rs 6,666 crore in FY25 from Rs 5,952 crore in FY24. However, the business remains exposed to commodity cycles and customer demand trends, which can make growth uneven.
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6. FY24 Numbers Were Hit By A Massive Exceptional Loss
The company reported a consolidated comprehensive loss of ₹8,382 crore in FY24 due to a non-cash goodwill impairment of ₹12,396 crore. The management has highlighted that the charge was exceptional and non-cash in nature.
7. Commodity Prices Remain A Major Risk
CMR's profitability depends on the spread between scrap procurement costs and alloy selling prices. Aluminium, zinc, copper and other metal price fluctuations can affect margins, inventory valuations and cash flows. The company also actively uses commodity derivatives, highlighting the importance of commodity risk management.
8. Customer Concentration Is Worth Tracking
The company derives a meaningful portion of revenue from a relatively small group of customers. Any slowdown in orders from large automotive OEMs or component manufacturers could affect volumes and profitability, making customer concentration an important monitorable. (As disclosed in the risk factors section of the RHP.)
9. Joint-Venture Disputes Have Surfaced Before
One of its joint ventures, CMR-Chiho Recycling Technologies, faced operational disputes between partners. Operations were discontinued, inventories were liquidated and the financial statements were prepared on a non-going-concern basis.
10. A Complex Structure
CMR operates through multiple subsidiaries and joint ventures, including partnerships with Japanese companies such as Toyota Tsusho, Nikkei MC Aluminium and Nippon Light Metal.
CMR Green Technologies Business
Incorporated in 2006, CMR Green Technologies Ltd. is a non-ferrous metal recycler in the secondary aluminium market. The company manufactures recycled aluminium alloys, zinc alloy ingots, and segregated furnace-ready scrap of stainless steel, copper, brass, zinc, lead and magnesium, among other things.
For the year ended March 2025, CMR Green Technologies reported total income of Rs 6,697 crore, compared to Rs 5,968 crore in the previous year. Profit after tax stood at Rs 155 crore, improving sharply from a loss of Rs 839 crore in 2024. EBITA also turned positive at Rs 329 crore, compared to a negative Rs 706 crore a year earlier.
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Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
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