New IPOs continue to enchant stag investors across all investment sectors. Taking a cue from the popular trend, two new companies have joined the IPO bandwagon, CMR Green Tech, and Paradeep Phosphates.
Let us uncover more details about these upcoming IPOs below!
CMR Green Tech IPO – Latest Development
A leading metal recycling company, CMR Green Tech, has filed its DRHP with SEBI to raise substantial funds. As per its initial draft papers, this upcoming public offering will comprise a fresh issue of shares amounting to Rs. 300 crores. It will also have an OFS of 3,34,14,138 equity shares by its investors and promoters.
Here’s a quick breakdown of this upcoming OFS:
- Gauri Shankar Agarwala: 34.33 lakh equity shares
- Kalawati Agarwal: A maximum of 33.45 lakh equity shares
- Mohan Agarwal: A maximum of 30.09 lakh shares
- Pratibha Agarwal: Up to 30.9 lakh equity shares
- Global Scrap Processors: Up to 1.99 crores shares
What is the Objective of this IPO?
CMR Green Tech is also planning to carry out a pre-public offer amounting to Rs. 60 crores. If the company moves ahead with this pre IPO placement plan, the fresh issue portion will get reduced.
That said, this metal recycling company plans to use its IPO proceeds in these ways:
- Repayment and prepayment of existing debt
- Addressing working capital requirement
- Meeting general corporate expenses
Entities such as JM Financial, ICICI Securities, and Axis Capital are the lead book-running managers of this upcoming IPO.
About CMR Green Tech
In the domestic aluminium recycling space, GMR Green Tech is a recognised name. In fact, it is among the leading metal recyclers in the market. This company primarily focuses on recycling aluminium. However, it is also proactively involved with processing the aluminium-based scrap metal to produce alloys, zinc alloys, and solid ingots, among others.
As of now, CMR Green Tech has 12 manufacturing units in the country. It is also planning to set up a cold refining plant in the state of Gujarat. This will be a measure towards reducing logistics costs and boosting operational efficiency.
Paradeep Phosphate IPO – A Step Ahead
Paradeep Phosphate is a leading fertiliser manufacturer that has received approval from the market regulator SEBI to float its IPO. This company had filed its initial draft papers in August. Subsequently, it received observations on 22 September 2021 and an update from SEBI this Monday.
As per the DRHP, the said IPO will comprise the issuance of new equity shares amounting to Rs. 1,255 crores and an OFS of a maximum of 12,00,35,800 shares by its promoters and shareholders.
Here’s a quick break up of Paradeep Phosphate IPO’s upcoming IPO:
- Government of India: Up to 11,24,89,000 equity shares
- Zuari Maroc Phosphates Pvt Ltd: A maximum of 75,46,800 equity shares
So, How does this Company Plan to Use its IPO Proceeds?
Here’s how Paradeep Phosphate IPO will use its net proceeds from the upcoming public offer:
- Payment of existing debt
- Addressing corporate purposes
- Partly fund the acquisition of a fertiliser manufacturing unit based in Goa.
As per the draft papers, entities such as SBI Capital, ICICI Securities, Axis Capital, and JM Financial are appointed as this IPO’s lead managers.
About Paradeep Phosphate in Brief
This company is proactively involved in the manufacture, trade, and sale of complex fertilisers. It deals in products such as NPK fertilisers and di-ammonium phosphate (DAP).
Its fertilisers are marketed under popular brand names such as ‘Navratna’ and Jai Kisaan – Navratna’.
Frequently Asked Questions
- When will CMR Green Tech IPO be opened for a public subscription?
CMR Green Tech is yet to announce the tentative timeline for its upcoming IPO.
- What is the IPO price band for Paradeep Phosphate?
This company is yet to announce details regarding its IPO, including its IPO price band. Typically, an IPO’s price band is announced a week before its launch.
- What is the next IPO on the horizon?
Aditya Birla Sun Life is gearing up to float its IPO on 29 September 2021.