CMR Green Technologies Submits Draft Papers to SEBI for IPO Approval

CMR Green Technologies Ltd, a leading player in non-ferrous metal recycling, has initiated the process of going public once again. The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), proposing an initial public offering (IPO) made entirely through an Offer for Sale (OFS). This step underscores the company’s focus on enhancing market visibility and offering liquidity to its existing investors.

Proposed IPO Structure 

According to the draft papers, the IPO will consist of an OFS of 4.28 crore equity shares. The sellers include promoter Mohan Agarwal, members of the promoter group, and investor Global Scrap Processors Ltd. 

At present, the promoters and their group hold nearly 87% of the company, while the remaining 13% is owned by Global Scrap Processors. Since this issue is fully an OFS, no fresh funds will be channelled into the company; instead, the proceeds will go directly to the selling stakeholders.

Business Profile And Operations

CMR Green Technologies has established itself as a prominent recycler specialising in aluminium alloys (both ingot and liquid), zinc alloys, and furnace-ready scrap of metals such as stainless steel, copper, brass, lead, and magnesium. With 13 strategically located recycling facilities spread across India, the company operates a wide procurement network that extends to Asia, Africa, the Middle East, Europe, and the Americas. 

Its strong client list includes some of the biggest names in the automotive sector, such as Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Endurance Technologies, Rockman Industries, and Craftsman Automation.

Past Attempt And Market Positioning

This is the 2nd time CMR Green Technologies is attempting to enter the capital markets. In September 2021, the company filed for an IPO comprising a fresh issue of ₹300 crore along with an OFS of 3.34 crore shares. Although SEBI gave its nod in February 2022, the firm decided not to move forward with the plan at that time. 

The company now expects that listing will not only strengthen its brand recognition but also broaden investor participation. Equirus Capital, ICICI Securities, and Motilal Oswal Investment Advisors have been appointed as the lead managers to steer the public offering.

Read More: Tata Capital Plans $2 Billion IPO in September, Targets $11 Billion Valuation!

Conclusion

By moving ahead with its IPO plans, CMR Green Technologies aims to leverage its established recycling expertise and global procurement network while offering its stakeholders an opportunity to unlock value. With its strong base in automotive supply chains and diversified operations across multiple metals, the company is positioning itself to capture investor interest in the upcoming listing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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