CMR Green Technologies files draft papers, seeks Sebi's nod to float IPO

CMR Green Technologies Ltd, non-ferrous metal recycler, has filed preliminary papers with markets regulator Sebi seeking its approval to raise funds through an initial public offering (IPO).

The proposed IPO is entirely through an Offer for Sale (OFS) of 4.28 crore equity shares, according to the draft red herring prospectus (DRHP) filed on Friday.

The selling shareholders include promoter Mohan Agarwal, certain members of the promoter group, and investor Global Scrap Processors Ltd.

At present, promoters and promoter group entities hold around 87 per cent stake in CMR Green Technologies, while the remaining 13 per cent is owned by Global Scrap Processors.

As the IPO is entirely an OFS, the company itself will not receive any proceeds from the issue; all funds raised will go directly to the selling shareholders.

In its draft papers, the company stated that listing is expected to enhance its visibility, brand image and provide liquidity to existing shareholders.

This is CMR Green's second attempt to tap the capital markets. Back in September 2021, the company had filed draft papers for an IPO comprising a fresh issue of shares worth Rs 300 crore and an OFS of 3.34 crore shares by promoters and investors.

Although the proposal received Sebi's approval in February 2022, the company eventually decided not to go ahead with the public issue at that time.

CMR Green Technologies specialises in processing and manufacturing aluminium alloys (ingot and liquid), zinc alloys, and furnace-ready scrap of stainless steel, copper, brass, lead, and magnesium, among others.

With 13 strategically located recycling facilities across India, CMR Green has developed a strong procurement network spanning domestic markets and international geographies, including Asia, Africa, the Middle East, Europe, and the Americas. Its customer base largely comprises OEMs and Tier-1 suppliers in the automotive sector.

Its customers include Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Endurance Technologies, Rockman Industries and Craftsman Automation.

To assist the public offering, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors have been appointed as lead managers.