CMR Green Technologies IPO Day 2: The initial public offering (IPO) of CMR Green Technologies has attracted notable investor attention, with strong demand on the first day of bidding and a healthy grey market premium (GMP) indicating optimism around its market debut. The Rs 630.6 crore public issue, which opened for subscription on June 3, will close on June 5.
The IPO is an offer-for-sale (OFS) only, meaning existing shareholders are offloading a portion of their stake, and the company itself will not receive any fresh capital from the issue. Shares are being offered in a price band of Rs 182 to Rs 192 apiece, with investors required to bid for a minimum lot size of 78 shares.
GMP Indicates Positive Market Sentiment
As of June 4, the IPO was commanding a grey market premium of around 31 per cent. Based on the upper price band of Rs 192 per share, the GMP suggests a potential listing price near Rs 252, according to the data from Investorgain. While GMP trends often provide a glimpse into investor sentiment before listing, they remain unofficial indicators and do not necessarily reflect the stock’s actual debut performance on the exchanges. Market conditions, institutional participation and broader investor sentiment can all influence listing-day outcomes.
Subscription Update
The IPO got off to a strong start, achieving an overall subscription of 2.46 times on the opening day. Demand was particularly strong among non-institutional investors (NIIs), who subscribed to their allotted quota 5.67 times.
Retail investors also showed considerable enthusiasm, with the category subscribed 2.45 times. In contrast, Qualified Institutional Buyers (QIBs) were relatively cautious during the first day, subscribing to only 3 per cent of the shares reserved for them.
About CMR Green Technologies
CMR Green Technologies is recognised as India’s largest non-ferrous metal recycler by installed capacity. According to an ICRA report referenced in the company’s prospectus, it also held the largest share of the domestic secondary aluminium market during FY25. The company operates 13 manufacturing facilities across India and produces a range of recycled metal products, including aluminium alloys, aluminium billets and zinc alloy ingots. It is also a major supplier to the automotive sector, commanding an estimated 42-45 per cent share of the cast alloy market.
Brokerage Views
CMR Green Technologies reported operating revenue of Rs 6,666 crore in FY25, representing a 12 per cent increase from the previous year. The company posted a profit after tax of Rs 155 crore, marking a turnaround from the loss recorded in FY24, which was largely attributed to a one-time goodwill impairment charge. Ahead of the IPO launch, the company secured Rs 188 crore from anchor investors, including domestic mutual funds, insurance firms and foreign institutional investors.
Brokerage opinions on the IPO remain divided. Motilal Oswal has highlighted the company’s strong position in the aluminium recycling market, its dominant industry presence and its alignment with long-term sustainability trends.
Meanwhile, Swastika Investmart has assigned a “Neutral” rating to the issue. The brokerage acknowledged the company’s leadership position and reasonable valuation but pointed to concerns such as the OFS structure, customer concentration risks, dependence on a limited number of clients and relatively thin margins. It added that high-risk investors may consider the issue primarily from a listing gains perspective.
