CMR Green Technologies IPO Day 2: Issue subscribed 8.91x so far. Check GMP, review, key dates. Apply or not?

CMR Green Technologies IPO opened for public subscription on 3 June and was fully subscribed on the very first day of bidding, reflecting strong investor interest in the non-ferrous metal recycler's public issue.

The CMR Green Technologies IPO is open for subscription until 5 June, with CMR Green Technologies IPO price band of ₹182-192 per share.

Ahead of the issue opening, the company raised ₹188.44 crore from anchor investors by allotting 98.14 lakh equity shares at the upper end of the price band, ₹192 per share. The anchor book saw participation from leading institutional investors, including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund and Goldman Sachs. Other notable investors included 360 One Equity Opportunity Fund, Abakkus Growth Fund, BNP Paribas, Citigroup Global Markets Mauritius and Susquehanna Pacific.

CMR Green Technologies IPO lot size has been fixed at 78 equity shares, with bids accepted in multiples thereafter. As per SEBI norms, up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. The company has also reserved 2.5 crore shares for eligible employees.

The basis of allotment is expected to be finalised on 8 June, while successful applicants are likely to receive shares in their demat accounts on 9 June. The stock is tentatively scheduled to list on the BSE and NSE on 10 June.

CMR Green Technologies IPO GMP today

CMR Green Technologies IPO GMP is ₹60. Considering the upper end of the IPO price band and the current grey-market premium, the estimated listing price of CMR Green Technologies shares is ₹252 apiece, which is 31.25% above the IPO price of ₹192.

According to the recent trends in grey market activity from the past eight sessions, today's IPO GMP is on the rise and is anticipated to have a robust listing. Experts indicate that the minimum GMP is ₹24, while the maximum is ₹63.

CMR Green Technologies IPO subscription status

CMR Green Technologies IPO subscription status is 8.91x on day 2, so far. The retail portion is subscribed 7.41x, and NII portion has been booked 19.78x, QIBs portion received 3.44x bids. The employee portion was booked 6.18x.

The company has received bids for 20,52,56,142 shares against 2,30,43,930 shares on offer at 15:54 IST, according to BSE data.

CMR Green Technologies IPO subscription status was 2.46x on day 1.

CMR Green Technologies IPO Review

Brokerages have offered mixed views on the CMR Green Technologies IPO, balancing the company's market leadership and industry tailwinds against concerns about margins and the issue structure.

SBI Securities has recommended investors subscribe to the IPO, citing CMR Green Technologies' position as the largest aluminium recycler in India by installed capacity. The brokerage believes the company is well-placed to benefit from rising demand for recycled metals and favourable industry dynamics. It also highlighted the company's risk-management framework, including the use of derivative instruments such as forward contracts to hedge commodity and currency risks.

According to SBI Securities, the Indian recycled aluminium market is expected to witness robust growth, with volume and market value projected to grow at CAGRs of 11.2% and 13.2%, respectively, over FY26-FY30. At the upper price band of ₹192 per share, the issue is valued at 27.1 times FY25 earnings and 20.3 times annualised 9MFY26 earnings on a post-issue basis. The brokerage believes the valuation is justified given the company's leadership position and growth prospects.

Swastika Investmart, however, has assigned a 'Neutral' rating to the issue. While acknowledging CMR Green Technologies' industry leadership, scale advantages and strong turnaround in FY25, the brokerage remains cautious due to certain business risks.

Swastika noted that the IPO is entirely an offer-for-sale (OFS), meaning the company will not receive any fresh capital from the issue. It also flagged concerns around the company's FY24 loss, relatively thin operating margins and customer concentration. Although the valuation appears reasonable compared with listed peers, the brokerage believes investors should remain mindful of execution and profitability risks.

Given the balanced risk-reward profile, Swastika Investmart said aggressive investors may consider the IPO from a listing gains perspective, while long-term investors should adopt a more selective approach.

Geojit Investments Ltd has recommended subscribing to the CMR Green Technologies IPO with a medium- to long-term investment horizon, citing the company's market leadership and favourable industry outlook.

According to the brokerage, the issue is valued at around 27 times FY25 earnings and 19 times annualised FY26 earnings on a post-issue basis at the upper price band of ₹192 per share. Geojit believes the valuation is broadly in line with peers, especially when factoring in business risks such as margin volatility and exposure to commodity price fluctuations.

Despite these challenges, the brokerage remains positive on the company's growth prospects. It highlighted CMR Green Technologies' position as the largest aluminium recycler in India by capacity, positioning it well to capitalise on rising demand for recycled metals and favourable industry tailwinds.

Geojit added that the company's scale, established market presence, and ability to serve a growing customer base provide a competitive advantage in a sector expected to benefit from sustainability-focused policies and rising adoption of recycled materials.

Given these factors, the brokerage has assigned a 'Subscribe' rating to the IPO for investors with a medium- to long-term perspective.

CMR Green Technologies IPO details

The IPO comprises solely an OFS of 3.28 crore equity shares from existing promoters and investors, with no fresh issue component. As a result, the company will not raise any capital through the IPO, and all proceeds will go directly to the selling shareholders.

Within the OFS, promoters Mohan Agarwal, Gauri Shankar Agarwala HUF, and Mohan Agarwal HUF are set to sell a total of 64.59 lakh shares. Investor Global Scrap Processors will handle the sale of the majority of shares, amounting to around 2.6 crore shares.

When the Red Herring Prospectus (RHP) was filed on 27 May, the promoters owned an 86.95% stake in CMR Green, whereas the public shareholder, Global Scrap Processors, held a 13.05% stake, equal to 2.85 crore shares.

Equirus Capital, ICICI Securities, and Motilal Oswal Investment Advisors have been selected as the merchant bankers to oversee the CMR Green Technologies IPO.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.