Metal recycling firm CMR Green Tech files IPO paperwork with regulator

Metal recycling company CMR Green Technologies has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share sale.

The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 300 crore and an offer for sale of 3,34,14,138 equity shares by promoters and investors, according to the draft red herring prospectus (DRHP).

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.

The company may consider a pre-IPO for up to Rs 60 crore. If such placement is completed, the fresh issue size will be reduced.

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. It is also engaged in the manufacturing of zinc alloys.

The company currently operates through 12 manufacturing facilities. 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.

ICICI Securities, Axis Capital and JM Financial are the book running lead managers to the issue.