CMR Green Technologies Files Draft Papers for IPO: What You Need to Know
CMR Green Technologies Ltd, a leading non-ferrous metal recycler, has taken the first step towards going public by filing preliminary papers with the Securities and Exchange Board of India (SEBI). The company is seeking SEBI’s approval to raise funds through an initial public offering (IPO), which is entirely an offer for sale (OFS) of 4.28 crore equity shares.
About CMR Green Technologies
CMR Green Technologies specializes in processing and manufacturing aluminium alloys (ingot and liquid), zinc alloys, and furnace-ready scrap of stainless steel, copper, brass, lead, and magnesium, among others. With 13 strategically located recycling facilities across India, the company has developed a strong procurement network spanning domestic markets and international geographies, including Asia, Africa, the Middle East, Europe, and the Americas.
Customer Base and Revenue Streams
CMR Green Technologies’ customer base largely comprises original equipment manufacturers (OEMs) and Tier-1 suppliers in the automotive sector. Some of its notable customers include Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Endurance Technologies, Rockman Industries, and Craftsman Automation.
IPO Details
The proposed IPO is entirely through an OFS of 4.28 crore equity shares, which means that the company itself will not receive any proceeds from the issue. All funds raised will go directly to the selling shareholders, which include promoter Mohan Agarwal, certain members of the promoter group, and investor Global Scrap Processors Ltd.
At present, promoters and promoter group entities hold around 87 per cent stake in CMR Green Technologies, while the remaining 13 per cent is owned by Global Scrap Processors.
Objectives of the IPO
According to the draft red herring prospectus (DRHP) filed by the company, the listing is expected to enhance its visibility, brand image, and provide liquidity to existing shareholders.
Previous Attempt at IPO
This is not CMR Green Technologies’ first attempt to tap the capital markets. In September 2021, the company had filed draft papers for an IPO comprising a fresh issue of shares worth Rs 300 crore and an OFS of 3.34 crore shares by promoters and investors.
Although the proposal received SEBI’s approval in February 2022, the company eventually decided not to go ahead with the public issue at that time.
Lead Managers and Other Details
To assist the public offering, Equirus Capital, ICICI Securities, and Motilal Oswal Investment Advisors have been appointed as lead managers.
Conclusion
CMR Green Technologies’ IPO is expected to generate significant interest among Indian investors, given the company’s strong market position and growth prospects. However, it is essential for investors to carefully evaluate the company’s financials, management, and industry trends before making an investment decision.
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