CMR Green Technologies IPO – Chanakya View
CMR Green Technologies operates in a niche yet fast-growing segment of aluminium recycling and secondary metal manufacturing, which is expected to benefit from increasing focus on sustainability, circular economy and decarbonization initiatives. The company is among the leading organised players in India’s non-ferrous metal recycling industry and supplies recycled aluminium products to major automotive OEMs including Maruti Suzuki, Bajaj Auto, Hero MotoCorp, Honda Cars and Royal Enfield.
The company enjoys strong customer relationships, diversified product offerings and a well-established supplier network. Financial performance has improved significantly with profitability recovering after FY2024 weakness, while revenue scale remains robust.
On the concern side, the IPO is 100% Offer For Sale (OFS), meaning the company will not receive any fresh capital from the issue. In addition, debt levels remain elevated and profitability margins are relatively thin, which are typical characteristics of the metal recycling business.
However, the current GMP of Rs. 64 against the upper price band of Rs. 192 indicates an estimated listing premium of around 33%, reflecting strong investor interest and positive grey market sentiment.
Chanakya Recommendation
✔ Strong position in aluminium recycling and ESG-linked business
✔ Supplies to leading automotive OEMs
✔ Recovery in profitability and healthy industry outlook
✔ Strong GMP indicating positive listing sentiment
✔ Mainboard IPO with good liquidity potential
Recommendation: SUBSCRIBE for Listing Gain as well as Long-Term Investment.
Positive Listing Guidance
At the current GMP of Rs. 64, the indicated listing price works out to around Rs. 256 (Rs. 192 + Rs. 64). If market conditions remain stable, the IPO has the potential to deliver a 25%–40% listing gain. Strong QIB participation and sustained GMP during the subscription period can further improve listing prospects. Investors seeking listing gains may consider holding till listing, while long-term investors can continue to ride the growth story of India’s organised metal recycling sector.
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