CMR Green Tech Files DRHP with SEBI for Proposed IPO
CMR Green Technologies, a metal recycling company, has filed the DRHP with SEBI for its proposed IPO. According to the draft red herring prospectus (DRHP), the IPO will consist of Rs.300 crore worth of fresh issue and an offer for sale (OFS) of 3.34 crore shares held by promoters and early investors. The IPO is subject to SEBI approval.
The OFS shares will be offered by four members from the promoter group and one early investors. The OFS break-up would be approximately as under.
|
Category |
Name of Shareholder |
Number of Shares offered |
|
Promoter Group |
Gauri Shankar Agarwal |
34.33 lakh shares |
|
Promoter Group |
Kalawati Agarwal |
33.45 lakh shares |
|
Promoter Group |
Mohan Agarwal |
30.09 lakh shares |
|
Promoter Group |
Pratibha Agarwal |
30.09 lakh shares |
|
Early Investor |
Global Scrap Processors |
199.00 lakh shares |
Data Source: DRHP
The fresh issue portion of Rs.300 crore will be largely utilized to repay the debt of the company as well as for general corporate purposes. The company is planning a Pre-IPO placement of shares worth Rs.60 crore to select institutional and HNI investors. If the placement is successful, the fresh issue size will be reduced proportionately.
With the focus on green technologies, there is a greater focus on the effective utilization of scrap. CMR Green Technologies is primarily focused on recycling aluminium. This process entails processing of aluminium based scrap metal to make aluminium alloys. The output is normally supplied, either in liquid form or in the form of solid ingots.
Its aluminium recycling business and the zinc alloys business is currently spread across 12 manufacturing facilities in India. The thirteenth such facility is being set up in the state of Gujarat, which will be a state of the art cold refining plant. This will not only create operational efficiencies but also reduce the logistics costs in the process.
The book running lead managers or BRLMs for the issue will be ICICI Securities, Axis Capital and JM Financial. The dates will be finalized post the approval received from SEBI.
Also Read:-
1) List of Upcoming IPOs in 2021
2) Upcoming IPOs to raise Rs.45,000 Crore in Oct-Nov
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