CMR Green Technologies cuts IPO size, issue to open on June 3

New Delhi, May 28 (PTI) Faridabad-based CMR Green Technologies, a non-ferrous metal recycler, is set to launch its truncated initial public offering (IPO) on June 3.

The total size of the IPO, however, has been reduced from the earlier proposed issuance of up to 4.29 crore equity shares, according to the RHP.

The IPO will open for subscription on June 3. The public offer will remain open till June 5, while the anchor investor round will be held on June 2, according to the Red Herring Prospectus (RHP) filed on Wednesday.

The IPO is entirely an offer-for-sale (OFS) of up to 3.28 crore equity shares by promoters and an investor selling shareholder.

Promoters – Mohan Agarwal, Gauri Shankar Agarwala HUF and Mohan Agarwal HUF – will be offloading a total

of 64.59 lakh shares of CMR Green Technologies, while Mauritius-based Global Scrap Processors will be selling nearly 2.64 crore shares.

As the issue is completely an OFS, the company will not receive any proceeds from the public offer and the entire amount will go to the selling shareholders.

At present, promoters and promoter group entities hold around 87 per cent stake in the company, while the remaining 13 per cent is owned by Global Scrap Processors.

This is CMR Green’s second attempt to tap the primary market. 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.

CMR Green Technologies specialises 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.

Its customer base largely comprises OEMs and Tier-1 suppliers in the automotive sector, including Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Endurance Technologies, Rockman Industries and Craftsman Automation.

The company’s shares will be listed on the BSE and NSE. Equirus Capital Ltd, ICICI Securities and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO. PTI HG SHM