New Delhi: Faridabad-based CMR Green Technologies, a company engaged in non-ferrous metal recycling, will launch its initial public offering (IPO) on June 3. The public issue will remain open for investors till June 5, while the anchor investor portion will open on June 2.
The company has reduced the size of the IPO compared to its earlier proposal, according to the Red Herring Prospectus (RHP) filed on Wednesday.
IPO Size Reduced
The IPO is now entirely an offer-for-sale (OFS) of up to 3.28 crore equity shares. Earlier, the company had planned to issue up to 4.29 crore shares.
Under the OFS, existing shareholders will sell their stake in the company. Since the issue is fully an OFS, CMR Green Technologies will not receive any money from the IPO. The entire proceeds will go to the selling shareholders.
Promoters, Investor To Sell Shares
Promoters Mohan Agarwal, Gauri Shankar Agarwala HUF and Mohan Agarwal HUF together will sell around 64.59 lakh shares through the IPO.
Mauritius-based Global Scrap Processors, which is an investor in the company, will offload nearly 2.64 crore shares.
Currently, promoters and promoter group entities own around 87 per cent stake in the company, while Global Scrap Processors holds the remaining 13 per cent.
Second Attempt At Listing
This is the company’s second attempt to enter the stock market.
In September 2021, CMR Green Technologies had filed draft papers for an IPO consisting of a fresh issue worth ₹300 crore along with an OFS of 3.34 crore shares.
Although the Securities and Exchange Board of India (Sebi) approved the proposal in February 2022, the company later decided not to proceed with the public issue.
Business And Customers
CMR Green Technologies manufactures aluminium and zinc alloys and also processes furnace-ready scrap of metals such as stainless steel, copper, brass, lead and magnesium.
The company mainly supplies products to automobile manufacturers and Tier-1 suppliers. Its customer list includes Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Endurance Technologies, Rockman Industries and Craftsman Automation.
The company’s shares will be listed on the BSE and NSE. Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO.
