CMR Green Technologies IPO: Tapping India's Growing Demand for Recycled Metals

But first, let's tell you a little about the company itself.

About CMR Green Technologies

The company is an Indian metal recycling and alloy manufacturing company headquartered in Faridabad, Haryana.

It focuses on recycling non-ferrous metals-primarily aluminium and zinc scrap-and converting them into die-casting alloys and related products used heavily in the automotive and engineering industries.

The management describes the company as India's largest metal recycling company and one of the top secondary aluminium producers in India.

What Makes This IPO Stand Out?

• Market leader in aluminium recycling: CMR is India's largest non-ferrous metal recycler by installed capacity and reportedly has around 42-45% market share in the cast alloy automotive segment.
• Strong automotive customer base: The company supplies major OEMs and Tier-1 suppliers such as Maruti Suzuki, Honda Cars India, Bajaj Auto, and Hero MotoCorp. Repeat customers contribute over 96% of revenue, indicating sticky relationships.
• Beneficiary of sustainability trends: Recycling aluminium consumes far less energy than producing primary aluminium, positioning CMR as a beneficiary of the global push toward decarbonization and circular economy practices.
• Extensive sourcing network: The company sources scrap from 73 countries through nearly 200 suppliers, reducing dependence on any single geography.
• Strategic Japanese partnerships: Joint ventures with companies such as Toyota Tsusho Corporation and Nippon Light Metal provide technical expertise and customer access.

Key details of the CMR Green Technologies IPO are as follows:

• Issue Size: The IPO aims to raise Rs 6.31 bn (Rs 630.88 crore).
• IPO Type: The issue is a 100% Offer-for-Sale (OFS) comprising approximately 32.9 million (m) equity shares. No fresh shares are being issued. The proceeds will go to the selling shareholders.
• Price Band: The IPO has been priced at Rs 182-192 per share.
• Face Value: Each share has a face value of Rs 2.
• Lot Size: Investors can bid for a minimum of 78 shares, requiring an investment of Rs 14,976 at the upper price band.
• Use of Proceeds: As the IPO is entirely an OFS, CMR Green Technologies will not receive any proceeds from the issue. The funds will be received by the selling shareholders.
• IPO Dates: The IPO opens for subscription on 3 June 2026 and closes on 5 June 2026. The shares are expected to list on the BSE and NSE on 10 June 2026.

A Look at the Financials

CMR Green Technologies delivered a steady financial performance in FY25, supported by strong demand from the automotive sector and its leadership in metal recycling.

Operating revenue increased to Rs 66.7 bn from Rs 62.2 bn in FY24, reflecting healthy volume growth and stable customer relationships.

Profitability also improved, with net profit rising to Rs 1.55 bn. The company's EBITDA remained strong, indicating operational efficiency despite fluctuations in scrap and metal prices.

Risk Factors of the CMR Green Technologies IPO

• Dependence on the automotive sector: A significant portion of revenue comes from automotive OEMs and component manufacturers. Any slowdown in vehicle production could affect demand for the company's products.
• Raw material price volatility: The business relies on sourcing metal scrap. Fluctuations in scrap and aluminium prices can impact margins and profitability.
• Customer concentration risk: Revenue is dependent on a limited number of large customers. Loss of a major customer could adversely affect financial performance.
• 100% OFS issue: Since the IPO is entirely an Offer-for-Sale, the company will not receive any fresh capital for expansion, debt reduction, or other growth initiatives.
• Global sourcing risks: CMR procures scrap from multiple countries. Changes in trade policies, import regulations, logistics costs, or supply chain disruptions could affect raw material availability and costs.
• Environmental and regulatory compliance: Metal recycling is subject to environmental regulations. Any non-compliance or tightening of regulations could increase operating costs.
• Competition: The company faces competition from both organised and unorganised recyclers, as well as primary metal producers, which could impact pricing power and market share.

Conclusion

CMR Green Technologies appears to be a well-positioned firm in India's growing metal recycling industry, due to rising demand for sustainable materials and lightweight automotive components.

The company enjoys a leadership position in non-ferrous metal recycling, long-standing relationships with major automotive customers, and a diversified sourcing network.

Its financials have shown steady growth in revenue and profitability, reflecting operational strength.

However, investors should note risks related to raw material price volatility, dependence on the automotive sector, and the fact that the IPO is a 100% OFS.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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