CMR Green Technologies IPO: GMP zooms 130% in a week; should you subscribe?

As the initial public offering (IPO) of CMR Green Technologies is set to open on Wednesday, June 03, 2026, the grey market premium (GMP) for the issue has a more than doubled in a week, since the official announcement of the issue. The issue is able to attract strong interest from the investors despite a volatile broader market sentiments.

The IPO of CMR Green Technologies shall be offering its in the price band of Rs 182 to Rs 192 per share. Investors can bid for a minimum of 78 equity shares and in multiples thereafter, while the issue will close on Friday, June 05. The anchor book is scheduled to open on Tuesday, June 02.

Last heard, CMR Green Technologies is commanding a grey market premium of Rs 55-56 per share, suggesting a upside potential of up to 30 per cent for the investors on the upper end of the price band. However, its GMP stood at Rs 24 when the price band for the issue was announced, implying a 133 per cent rise in the GMP since then.

"We recommend to subscribe this IPO with long term view as the issue appears fully priced. With its expanding operating metrics, CMR Green has established itself as a leading player in the non-ferrous metal recycling industry. It operates one of the largest capacities in the sector and is widely recognized as a preferred partner among industry participants, said Kunvarji Wealth Solutions.

The IPO is an offer-for-sale of up to 3,28,58,323 equity shares by promoters and other shareholders, through which the company is looking to raise Rs 630.88 crore. As the issue is entirely an offer-for-sale, CMR Green Technologies will not receive any proceeds from it.

Faridabad-based CMR Green Technologies is a non-ferrous metal recycler operating in the secondary aluminium market, with a focus on aluminium and zinc die-casting alloys. It manufactures recycled aluminium alloys in ingot and liquid form, zinc alloy ingots, and segregated furnace-ready scrap of stainless steel, copper, brass, zinc, lead and magnesium, among other products.

It has the largest capacities among the industry players and enjoys most preferred partner status. The valuation at 27.13x P/E looks attractive compared to peers, and the FY25 turnaround is encouraging. However, the pure OFS nature with promoters exiting and the sharp FY24 loss are red flags, said Swastika Investmart.

"Thin margins and customer concentration make this a high-risk IPO with limited margin of safety. Therefore we assign an 'neutral' rating to the CMR Green Technologies Limited IPO, High-risk investors may consider applying for listing gains," it added.

The company also produces aluminium billets for the automotive and non-automotive sectors. Its customers include major OEMs and Tier-1 automotive component manufacturers such as Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield, Endurance Technologies, Maruti Suzuki and Jindal Stainless.

CMR Green has reserved shares worth Rs 2.5 crore for eligible employees, who will receive a discount of Rs 18 per share. Of the net offer, 50 per cent has been reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional investors.

For the period ended December 31, 2025, the company reported a net profit of Rs 162.39 crore on revenue of Rs 6,291 crore. For the financial year ended March 31, 2025, it posted a net profit of Rs 155.04 crore and revenue of Rs 6,696.66 crore. At the current valuation, the company is pegged at a market capitalisation of Rs 4,205 crore.

CMR Green continues to operate with relatively low margins due to its hedging strategy. Extensive use of forward contracts to manage commodity price volatility may restrict upside benefits from favorable aluminium price movements, thereby limiting margin expansion despite higher production volumes and improved realizations, said Beacon Capital Advisors, with a 'may apply' tag.

"It is India's largest non-ferrous metal recycler with the highest secondary aluminium market share and an installed capacity nearly four times that of its nearest domestic competitor, making it a preferred partner for major OEMs. Indian recycled aluminium market is projected to grow at a CAGR of 13.2 per cent in value and 11.2 per cent in volume during FY26-FY30, providing significant growth opportunities," it added.

Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book-running lead managers to the issue, while Kfin Technologies Ltd is the registrar. The shares are set to be listed on the BSE and the NSE on June 10, which has been given as Wednesday. The issue includes an employee reservation, specified investor allocation.