IPO Synopsis
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.
About CMR Green Technologies Ltd
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
CMR Green Technologies Ltd Financial Status
Financials
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Revenue |
2913.19 |
0.00 |
0.01 |
|
EBITDA |
336.53 |
-0.01 |
-0.01 |
|
PAT |
40.73 |
0.12 |
0.05 |
|
EPS (basic in Rs.) |
0.98 |
0.05 |
0.02 |
|
ROE |
0.23% |
0.57% |
2.84% |
|
ROCE |
23.59% |
21.52% |
24.27% |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Total Assets |
2924.62 |
121.67 |
39.53 |
|
Share Capital |
0.33 |
0.39 |
0.39 |
|
Total Borrowings |
481.18 |
0.02 |
0.01 |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Net cash generated from / (used in) operating activities |
-85.15 |
-0.01 |
-0.01 |
|
Net cash from / (used in) investing activities |
-86.91 |
0.00 |
0.00 |
|
Net cash flow from / (used in) financing activities |
158.36 |
0.01 |
0.01 |
|
Net increase (decrease) in cash and cash equivalents |
-13.70 |
0.00 |
0.00 |
The Key points are-
IPO Key Points
-
Strengths
- Leading recycler in the domestic aluminium recycling industry in India
- Long-standing relationships with the customers
- Leading supplier of liquid aluminium alloy
- Strategic alliances through joint ventures
- Strong and diversified supplier base for sourcing raw materials
- Environment friendly business supported by green technologies and processes
-
Risks
- Depend on a limited number of customers for significant portions of the revenues
- No long-term agreements with customers
- A loss of, or a significant decrease in business from automotive industry customers or a change in the preference of alloys used in the automotive industry
- Volatility in the supply and pricing of the raw material
- Inability to successfully develop or procure specialized technology for manufacturing processes
- Inability to accurately forecast demand for the products, and manage the inventory or plan capacity increases
- Rely on third-party transportation providers for procurement of raw materials and for supply of the products
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked