CMR Green Technologies Limited is the largest metal recycler in the domestic aluminium recycling sector, as well as one of the world’s largest. The CMR Green Technologies IPO is expected to hit the stock market in December 2021.
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About CMR Green Technologies
CMR Green Technologies is mainly focus on aluminium recycling, which entails processing aluminum-based metal trash to create aluminium alloys and delivering them both in liquid and solid form, as well as zinc alloy production.
Demand from the automobile industry accounts for a substantial percentage of overall secondary aluminium volumes in India, and this demand is anticipated to rise at a 14-15 percent CAGR between Fiscal 2021 and Fiscal 2025.
While they had a market share of 26-30% in the automotive segment of the recycled aluminium industry in India in Fiscal 2020, CRISIL predicted that in Fiscal 2021, they would have a market share of 28-30%.
Manufacturing Facilities
They now have 12 production facilities, 10 of which are dedicated to aluminium recycling for the automobile manufacturing sector in India and abroad.
These ten production sites, which are strategically positioned near their clients’ manufacturing plants in important auto clusters in north, west, and south India, allow them to optimise deliveries, decrease lead times, and permit more engagement with their customers.
They’re also planning to build a cold refining plant in Gujarat to improve operational efficiency and lower logistical costs. In addition, in 2020, they had also opened a plant in Balasar, Gujarat.
Clients
OEMs and Tier 1 businesses in the automobile manufacturing industry are the majority of their clients. Tier 1 firms are those who supply OEMs directly. Maruti Suzuki India, Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, and India Yamaha Motor are among their OEM clients.
While Toyota Industries Engine India Pvt Ltd, Sunbeam Lightweighting Solutions Pvt Ltd, Endurance Technologies Ltd, Rico Auto Industries Ltd, Minda Industries Ltd, Jaya Hind Industries pvt. Ltd, and Samvardhana Industries pvt. Ltd are just some of their Tier 1 clients.
CMR Green Technologies IPO
CMR Green Technologies Limited, headquartered in Faridabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 300 crores and 33,414,138 equity share on 26 September 2021.
The offer includes 300 crores value fresh equity shares and there is an offer for sale (OFS) of 33,414,138 equity share by the promoters mentioned in the DRHP. They are also looking to for pre-ipo placement of INR 60 crores.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 2,924.62 | 121.66 | 39.53 | ||
| Total Revenue | 2,927.30 | – | 0.01 | ||
| Profit After Tax | 40.73 | 0.12 | 0.05 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 8.86 | 0.98 | 3 |
| Financial Year 2020 | 0.05 | 0.05 | 2 |
| Financial Year 2019 | 0.02 | 0.02 | 1 |
| Weighted Average | 4.45 | 0.51 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the basic aspects and key strengths that contribute into determining the Offer Price:
- In India’s domestic aluminium recycling sector, they are a prominent recycler.
- Their customers’ long-term connections with them.
- They are a renowned liquid aluminium provider.
- They have strategic relationships by Joint ventures.
- For acquiring raw materials, they have a strong and diverse supplier base.
- They run an environmentally friendly company that uses green technology and procedures.
- Their engineering knowledge, as well as their facilities, technology, and quality processes.
- They have a management staff that is competent and skilled, with an emphasis on environmental, social, and governance principles.
CMR Green Technologies IPO Peer Comparison
There are no publicly traded businesses in India that operate in a similar industry to theirs. As a result, providing an industry comparison in respect to their Company is not feasible for them.
CMR Green Technologies IPO Details
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Issue Type | Book Building |
| Face Value | 2 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 300 crore |
| Offer for Sale | 33,414,138 Equity shares |
CMR Green Technologies IPO Date
CMR Green Technologies IPO opening date is December 2021, and the closing date is December 2021. The CMR Green Technologies IPO issue may list in December 2021.
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Basis of Allotment Date | December 2021 |
| Initiation of Refunds | December 2021 |
| Credit of Shares to Demat Account | December 2021 |
| IPO Listing Date | December 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
CMR Green Technologies IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of CMR Green Technologies IPO.
CMR Green Technologies IPO GMP
CMR Green Technologies IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
CMR Green Technologies IPO Review
CMR Green Technologies IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of CMR Green Technologies IPO is good or bad.
CMR Green Technologies IPO Risk
- One among their lenders has alleged that they have defaulted on the repayment of certain amounts under a facility that their Company has taken out, and has filed several lawsuits against them, including a corporate insolvency resolution process.
- They rely on a small number of clients for a large part of their earnings.
- They do not have long-term contracts with any of their customers.
- Supply and pricing volatility in their raw materials may have a negative impact on their operations.
- There is pending lawsuit against their Company, its subsidiaries, directors, and promoters, which, if things goes against them, it might have a negative impact on their operations and cash flows.
Other Threats
- Their business has been damaged by the COVID-19 epidemic and the subsequent decline in overall economic conditions.
- Their manufacturing facilities’ regional concentration may limit their operations and have a negative impact on their business.
- They’ve done joint ventures in the past and may do so again in the future, which may be tough to integrate and manage.
- They are unable to locate some of their company’s historical documents.
- Their debts, as well as the terms and limitations imposed on them by their financing arrangements, may have a negative impact on their capacity to do business.
- Conflicts of interest may develop as a result of their Company and some of their Group Companies sharing common business goals.
Journey
In September 2008, they began delivering liquid aluminium through their manufacturing facilities next to their clients’ premises, and in November 2013, they began supplying liquid aluminium via road transport.
Because of their capacity to deliver liquid aluminium in addition to ingots, they have been able to be more flexible in their production processes and capitalise on the growing trend of supplying liquid aluminium, which offers numerous operational advantages to both producers and customers.
For example, in addition to lowering inventory management expenses, liquid aluminium avoids the remelting process, decreasing oxidation losses and power and fuel usage for their customers.
Certification
At each stage of the recycling process, their facilities use a comprehensive and strict quality control mechanism to ensure that their completed product meets their clients’ exact specifications.
Certain of their other production sites have obtained IATF 16949:2016 accreditation for quality management systems as of September 26, 2021. ISO 9001:2015 certifications have been granted to the Vanod, Halol, and Vallam plants.
In addition, ISO 14001:2015 for environmental management systems and ISO 45001:2018 for occupational health and safety management systems have been awarded to their facilities.
They’ve delivered up to 99 gallons of liquid aluminium to a single customer in the past.
CMR Green Technologies IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
CMR Green Technologies IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| December 2021 | 1 | |||||
| December 2021 | 2 | |||||
| December 2021 | 3 |
Management
Gauri Shankar Agarwala, their Promoter, has extensive expertise in the fields of law, finance, and taxation, among others.
Their Chairman and Managing Director, Mohan Agarwal, has over 27 years of expertise in the aluminium alloys recycling business.
Furthermore, they have a seasoned management board that has successfully implemented organisational and operational improvements in their company over the last few years.
This group is supported by a core technical group with extensive production expertise and technological know-how. They provide training to their staff on a regular basis in order to make them more skilled in the future.
They are also involved in certain social welfare activities across India.
Promoters
- Gauri Shankar Agarwala
- Mohan Agarwal
- Kalawati Agarwal
- Pratibha Agarwal
Promoter’s Holding
| Pre Issue Share Holding | 82.23% |
| Post Issue Share Holding |
CMR Green Technologies IPO Prospectus
Contact Details
CMR Green Technologies Limited
Unit Nos. 802-803, 8th Floor,
SSR Corporate Park, Sector 27 B,
Faridabad 121 003, Haryana, India
Tel: +91 129 422 3050
E-mail: [email protected]
Website: www.cmr.co.in
Registrar
KFin Technologies Private Limited
Selenium Tower-B, Plot No. 31 & 32
Financial District, Nanakramguda
Serilingampally, Hyderabad, Rangareddi 500 032
Telangana, India
Telephone: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- JM Financial Limited
- Axis Capital Limited
- ICICI Securities Limited
We hope we are able to answer all your questions about CMR Green Technologies IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
CMR Green Technologies IPO Opening Date?
CMR Green Technologies IPO will open in December 2021.
CMR Green Technologies IPO Listing Date?
CMR Green Technologies IPO will list in December 2021.
CMR Green Technologies IPO GMP Today?
CMR Green Technologies IPO Grey Market Premium is INR 0 .
CMR Green Technologies IPO Allotment Date?
CMR Green Technologies IPO basis of allotment will be in December 2021.
Lot size for CMR Green Technologies IPO?
Lot size for CMR Green Technologies IPO is 0.
