The CMR Green Technologies IPO witnessed blockbuster investor demand on its final day of bidding.
It saw a stellar subscription of 127.04 times. The metal recycling company’s GMP has also drastically climbed up and is currently over 37%.
The company’s offer worth Rs 630.88 crore closed yesterday and has been given a ‘Long-Term Subscribe’ rating by many brokerages.
In case you don’t miss out on any essential details, here are five key details investors should know about the CMR Green Technologies IPO:
#1 CMR Green Technologies IPO: Issue Size, BRLM and GMP
The IPO is a book build issue worth Rs 630.88 crore, and the company will raise the capital via the offer for sale route. It will issue 3.29 crore shares of face value Rs 2 each.
The book-running lead managers for the IPO are Equirus Capital, ICICI Securities, and Motilal Oswal Investment Advisors, while KFin Technologies is the registrar to the offer.
The share price band for the offer was fixed at Rs 182 to Rs 192 per share.
#2 CMR Green Technologies IPO: Grey Market Premium
As per the latest update, the metal recycling company’s shares are trading in the grey market at a premium of Rs 72 or 37.50% reflecting an estimated listing price of Rs 264. Over the last one week the IPO’s GMP has increased from 13% to 37%.
However, it is important for readers to note that GMP is an unofficial metric to determine the listing price and fluctuates based on market mood and sentiment.
#3 CMR Green Technologies IPO: Key dates
The IPO which opened on Wednesday, June 3, closed for bidding yesterday i.e. Friday, June 5. Eligible beneficiaries shall be allotted the shares on Monday, June 8, while refunds and credit of shares and requisite refunds shall take place on Tuesday, June 9.
The company will list on NSE and BSE on Wednesday, June 10.
#4 CMR Green Technologies IPO: Subscription snapshot
The CMR Green Technologies IPO saw overwhelming investor demand, as it received bids for more than 292 crore equity shares against its ask of 2.3 crore shares. By the end of the bidding window, the overall subscription stood at 127.04 times.
- Qualified Institutional Buyers (QIBs): 270.46 times
- Non-Institutional Investors (NIIs): 172.35times
#5 CMR Green Technologies IPO: Expert take
Giving the IPO a ‘Subscribe’ rating, Deven Choksey Research said, “We do not expect a sudden inflection in profitability. What we do expect is steady compounding revenue growth driven by new capacity, gradual product mix enrichment toward liquid metal and billets which approximately doubles the serviceable, the management’s willingness and flexibility to add-on new metals and products once they’re proven scalable, and a long tail of optionality from carbon credit monetization.”
“At the upper price band of Rs 192, CGTL is valued at ~27x FY25 P/E and ~19x annualized FY26 P/E (post-issue), which appears fairly priced relative to peers, considering inherent risks such as margin volatility and commodity exposure. However, as the largest player by capacity, the company is well positioned to benefit from strong industry tailwinds, supported by its scale, market leadership, and ability to cater to growing demand. Hence, we recommend a “Subscribe” rating for a medium to long term,” said Geojit Investments in its report.
“Overall, CMR Green is well-positioned to capitalize on the growing shift toward sustainable metal recycling, supported by market leadership, scale advantages, product diversification, and favorable industry dynamics.. Hence, we assign Subscribe-long Term rating for the issue,” said Anand Rathi Research Team in its report.
