CMR Green Technologies Ltd Files DRHP for IPO

CMR Green Technologies Ltd, the Faridabad-based metal processing and recycling company, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO). The proposed IPO is entirely through an OFS (offer-for-sale) of 4.28 crore equity shares.

The selling shareholders of the company include its promoter Mohan Agarwal, certain members of the promoter group and investor Global Scrap Processors Ltd.

CMR Green Technologies Ltd - IPO Details

According to the DRHP, 

• CMR Green Technologies will be entirely through an offer-for-sale (OFS) of 4.28 crore equity shares. Promoters and promoter group entities presently hold around 87% stake in the company, while the investor has the remaining 13%. 
• Since the proposed IPO is fully an OFS, the company will not receive any proceeds from the issue. All the funds raised will directly go to the selling shareholders. 
• Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors have been appointed as the lead managers for the IPO. 
• Preliminary papers have been refiled with the SEBI. The company had earlier filed its draft papers in September 2021 (a combination of fresh shares worth ₹300 crore and an OFS of 3.34 crore shares). Despite approval by the SEBI in February 2022, the company could not launch the IPO within the deadline.

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IPO Objective

The objectives for the CMR Green Technologies’ IPO include the following: 

• Higher visibility and brand image with the listing. 
• Provision of liquidity to existing shareholders. 

About CMR Green Technologies Ltd

Headquartered in Faridabad, CMR Green Technologies specialises in the manufacturing and processing of aluminium alloys (liquid and ingot), furnace-ready scrap (stainless steel, brass, copper, liquid and lead) and zinc alloys. It also manufactures aluminium billets used in both automotive and non-automotive sectors.

The company has 13 recycling facilities across India and has built a robust procurement network spanning both domestic and global markets throughout Asia, the Middle East, Africa, Europe and the Americas. It majorly serves OEMs and Tier-1 suppliers in the automotive sector, including Hero MotoCorp, Bajaj Auto, Honda Cars India, Endurance Technologies, Craftsman Automation, Royal Enfield Motors and Rockman Industries. The company also has the highest market share in the secondary aluminium market in India in terms of revenue for FY25. 

The company was incorporated in 2005 and competes with listed entities like Gravita India, Pondy Oxides and Chemicals and Baheti Recycling Industries. It has recorded a profit of ₹155 crore for FY25 against a loss of ₹838.6 crore in the previous year. Revenues grew by 12% in the same period to ₹6,666.5 crore, up from ₹5,952.4 crore previously.

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