India's largest non-ferrous metal recycler by installed capacity, CMR Green Technologies, will open its initial public offering (IPO) for subscription today, 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.
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.
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.
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.
Brokerage Views
SBI Securities (Rating: Subscribe)
- Market leader in aluminium recycling – SBI highlights CMR as the largest player in India's aluminium recycling industry by installed capacity, with 4.7 lakh MTPA capacity, roughly 4x that of its nearest competitor.
- New growth avenue through wrought aluminium – The brokerage sees the company's entry into extrusion and rolled aluminium products through the Tirupati facility as a key growth driver beyond its core automotive business.
- Strong niche in liquid aluminium supply – SBI notes that CMR is among the few players capable of supplying liquid aluminium alloys, a segment with high entry barriers and long-term contracts such as the Hindalco-linked Odisha project.
- Industry tailwinds and reasonable valuation – At the upper price band, SBI says the IPO is valued at 27.1x FY25 earnings and 20.3x annualised 9MFY26 earnings, while the Indian recycled aluminium market is expected to grow at a CAGR of 11.2%-13.2% through FY30.
Kantilal Chhaganlal Securities (Rating: Apply for Long Term)
- Dominant industry position – KC Securities highlights CMR's leadership in non-ferrous metal recycling and its installed capacity advantage of around 4x over the nearest domestic competitor.
- Expansion broadens addressable market – The brokerage points to the company's entry into extrusion and rolled aluminium products via the Tirupati and Odisha plants, which expands its opportunity beyond the cast-alloy automotive segment.
- Beneficiary of sustainability and recycling trends – KC notes that recycled aluminium emits significantly less carbon than primary aluminium and expects India's recycled aluminium market volume to grow at an 11.2% CAGR through FY30.
- Valuation attractive versus peers – The brokerage argues that the IPO valuation of about 27.1x earnings compares favourably with listed recycling peers and recommends investors apply with a long-term horizon.
Common Risks Flagged by SBI
- Revenue is heavily dependent on aluminium products (about 82% of sales).
- Top five customers account for around one-third of revenue.
- Scrap sourcing is import-dependent, with the US being a major supplier.
- The company witnessed a sharp FY24 net-worth erosion due to a goodwill write-off.
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