CMR Green Technologies IPO Review

CMR Green Technologies, a Metal recycling company has filed preliminary papers with SEBI to raise funds through an initial share sale of fresh issue of equity shares worth ₹300 crores and an offer for sale (OFS) of 3.34 crore equity shares by promoters and investors.

CMR Green Technologies IPO

CMR Green Technologies is one of the leading metal recyclers in the domestic aluminium recycling industry. It mainly focuses on the recycling of aluminium, which involves the processing of aluminium-based metal scrap to manufacture aluminium alloys and supplying them in liquid form as well as solid form.

It has a huge demand in the automotive industry where it forms a large number of total volumes of secondary aluminium. The demand for secondary aluminium is expected to grow at 15% CAGR between FY2021 and FY2025. The company also manufactures zinc alloys.

Objectives of CMR Green IPO

CMR Green Technologies has come up with its IPO to raise funds from the fresh issue which will be utilized towards the payment of debt and general corporate purposes.

CMR Green Technologies Promoter

  • Gauri Shankar Agarwala.
  • Kalawati Agarwal.
  • Mohan Agarwal.
  • Pratibha Agarwal.

Company Financials

Particulars (Cr)

FY21

FY20

FY19

Revenue

2913.19

0.00

0.01

EBITDA

336.53

-0.01

-0.01

PAT

40.73

0.12

0.05

EPS (basic in Rs.)

0.98

0.05

0.02

ROE

0.23%

0.57%

2.84%

ROCE

23.59%

21.52%

24.27%

CMR Green Technologies IPO Review

Strengths:

  1. The company is a leading recycler in the domestic aluminium recycling industry in India.
  2. It is a leading supplier of liquid aluminium alloy.
  3. It has a strong and diversified supply base for sourcing raw materials all over.
  4. Its green technology strategy makes it an environmentally friendly business.

Risks:

  1. A loss in business from automotive industry customers or a change in the preference of alloys would affect the customers.
  2. Not so efficient in successfully developing specialized technology for manufacturing processes
  3. Hardly forecast demand for the products, and manage capacity increases accurately.
  4. Relies a lot on third party transportation providers for supply of raw materials etc.

Here is the strength and risks of CMR Green Technologies. The detailed review about the IPO will be updated soon once the IPO price band, valuations and details are out.

CMR Green Technologies IPO Book Running Lead Manager(s)

  • ICICI Securities.
  • Axis Capital.
  • JM Financial.

CMR Green Technologies IPO Registrar

KFin Technologies Private Limited
E-mail: cmr.ipo@kfintech.com
Website: www.kfintech.com
Phone: +91 406-716-2222

Company Contact Details

Unit no. 802-803,
8TH Floor, SSR Corporate Park,
Sec 27 B, Faridabad,
Haryana – 121003
Website: www.cmr.co.in

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