CMR Green Technologies Ltd IPO

Last Updated: 09 December 2022 11:24 AM by 5Paisa

IPO Synopsis
Metal recycling company CMR Green Technologies has filed preliminary papers with SEBI to raise funds through an initial share sale worth fresh issuance of equity shares worth Rs. 300 crores and an offer for sale of 3.34 crore shares by promoters and investors. 
The company may consider a pre-IPO for up to ₹60 crore. 
Those offering shares in the OFS include promoters -- Gauri Shankar Agarwala (34.33 lakh equity shares), Kalawati Agarwal (up to 33.45 lakh equity shares) and Mohan Agarwal and Pratibha Agarwal will divest up to 30.09 lakh equity shares each, and investor Global Scrap Processors will sell up to 1.99 crore equity shares.
ICICI Securities, Axis Capital and JM Financial are the book running lead managers to the issue.

Objective of the Issue
The proceeds from the fresh issue will be utilised towards the payment of debt and general corporate purposes.
 

CMR Green Technologies is one of the leading metal recyclers in the domestic aluminium recycling industry.
It is primarily focused 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 ingots. Among the major key end-use industries, demand from the automotive industry forms a large portion of total volumes of secondary aluminium in India and this demand is expected to grow at 14-15% CAGR over Fiscal 2021 and Fiscal 2025 It is also engaged in the manufacturing of zinc alloys.
The company currently operates through 12 manufacturing facilities, of which, 10 facilities undertake aluminium recycling operations, targeted towards the automotive manufacturing sector in India and overseas. These 10 manufacturing facilities, each of which is situated in key auto clusters in north, west and south India, are strategically located close to our customers’ manufacturing facilities allowing to optimise deliveries, reduce lead times and facilitate greater interaction with the customers.
In addition, it is in the process of setting up a cold refining plant in Gujarat to create further operational efficiency and reduce logistics costs.
In addition to aluminium recycling, we focus on segregation and recycling of other metals such as stainless steel, copper, brass, zinc, magnesium and steel that form part of the mixed metal scrap that we procure, and recycling of end-of-life vehicles (“ELVs”) where we undertake dismantling, shredding and sorting of ELV parts

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