CMR Green Technologies Limited – IPO Detailed Analysis
Source: Red Herring Prospectus dated May 27, 2026. This analysis is purely educational and informational. It does not contain any recommendation to buy, sell, hold or apply for the IPO.
1. Quick Summary for Investors
CMR Green Technologies Limited (CMR Green) is, per the ICRA Report cited in the RHP, India’s largest non-ferrous metal recycler by installed capacity as of March 31, 2025 and holds the highest market share in India’s secondary aluminium market by FY2025 revenue. Its installed capacity is stated to be around 4x that of the nearest domestic competitor in recycled aluminium. The company manufactures recycled aluminium alloy ingots, liquid aluminium alloys, aluminium billets, zinc alloy ingots, and segregated scrap of stainless steel, copper, brass, zinc, lead and magnesium.
The IPO is a 100% Offer for Sale (OFS) of up to 3,28,58,323 equity shares of face value ₹2 each. There is no fresh issue, which means the company itself will not receive any money from this IPO. The entire proceeds will go to the selling shareholders. The largest seller is Global Scrap Processors Limited (Investor Selling Shareholder), offloading up to 2,63,98,895 shares.
2. Offer Details at a Glance
| Particular | Detail |
|---|---|
| Issuer | CMR Green Technologies Limited |
| Type of Offer | 100% Offer for Sale (No Fresh Issue) |
| Face Value | ₹2 per Equity Share |
| Total Offer Size | Up to 3,28,58,323 Equity Shares |
| Price Band | To be announced (not specified in RHP) |
| Anchor Bidding Date | Tuesday, June 02, 2026 |
| Bid / Offer Opens | Wednesday, June 03, 2026 |
| Bid / Offer Closes | Friday, June 05, 2026 |
| Listing Exchanges | BSE & NSE (Designated: BSE) |
| Employee Reservation | Up to ₹25 million |
| Registrar | KFin Technologies Limited |
| Lead Managers | Equirus Capital, ICICI Securities, Motilal Oswal Investment Advisors |
3. Selling Shareholders
| Shareholder | Category | Shares Offered (Up to) |
|---|---|---|
| Mohan Agarwal | Promoter | 49,59,428 |
| Gauri Shankar Agarwala HUF | Promoter Group | 10,00,000 |
| Mohan Agarwal HUF | Promoter Group | 5,00,000 |
| Global Scrap Processors Limited | Investor | 2,63,98,895 |
| Total | 3,28,58,323 | |
Weighted average cost of acquisition per share: Mohan Agarwal ₹0.01, Gauri Shankar Agarwala HUF ₹0.05, Mohan Agarwal HUF ₹0.08, Global Scrap Processors Limited – Nil. (Source: RHP cover page.)
4. Business Overview
CMR Green operates 13 recycling facilities across India in Haryana (Tatarpur, Manesar, Bawal), Gujarat (Vanod x2, Halol), Tamil Nadu (Chennai, Vallam), Uttarakhand (Haridwar), Maharashtra (Pune), Andhra Pradesh (Tirupati), Odisha (Sambalpur) and Rajasthan (Bhiwadi). Total installed capacity stood at 6,05,850 MTPA as of December 31, 2025.
Per the ICRA Report cited in the RHP, the company has approximately 42–45% market share by volume in the cast alloy segment of the automotive industry in FY2025. It supplies liquid aluminium alloy directly to customers’ premises – a niche where the RHP states only a handful of technically advanced recyclers operate in India.
Key customers include Maruti Suzuki, Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield, Endurance Technologies, Rockman Industries, Craftsman Automation, India Yamaha Motor, and exports to customers in Japan, Belgium, Germany, China and Thailand. The company also has joint ventures with Toyota Tsusho (since 2012), Nikkei MC Aluminium (since 2012) and Nippon Light Metal (since 2025).
Revenue Mix by Metal (₹ in million)
| Period | Aluminium | % Share | Other Metals | % Share |
|---|---|---|---|---|
| 9M FY26 (Dec 31, 2025) | 50,956.97 | 81.85% | 11,297.64 | 18.15% |
| FY2025 | 52,256.01 | 78.42% | 14,383.68 | 21.58% |
| FY2024 | 45,759.96 | 76.95% | 13,703.76 | 23.05% |
| FY2023 | 42,821.65 | 73.13% | 15,734.65 | 26.87% |
5. Financial Snapshot (Restated Consolidated)
| Particulars (₹ in million) | 9M FY26 | FY2025 | FY2024 | FY2023 |
|---|---|---|---|---|
| Revenue from Operations | 62,755.24 | 66,664.85 | 59,524.42 | 58,685.07 |
| Total Income | 62,910.03 | 66,966.63 | 59,684.44 | 58,898.95 |
| EBITDA | 3,244.38 | 3,037.17 | 2,174.04 | 2,070.14 |
| Profit Before Exceptional Item & Tax | 2,132.01 | 2,050.61 | 1,295.35 | 1,378.77 |
| Profit / (Loss) for the Year | 1,623.94 | 1,550.38 | (8,385.57)* | 1,045.07 |
| Net Debt / Equity (times) | 0.76x | 0.58x | 0.36x | 0.15x |
| Net Fixed Asset Turnover (times) | 7.51x | 8.14x | 9.31x | 11.36x |
| Number of Manufacturing Facilities | 13 | 13 | 11 | 11 |
*FY2024 loss was on account of a non-cash exceptional item of ₹12,396.27 million representing impairment of goodwill (no cash impact). Excluding this, the underlying operating performance was profitable.
Key Per-Share & Return Metrics
| Particular | 9M FY26 | FY2025 | FY2024 | FY2023 |
|---|---|---|---|---|
| Basic EPS (₹) | 4.41 (not annualised) | 6.50 | (38.32) | — |
| RoNW (%) | 24.92% (not annualised) | 31.08% | (265.90%) | 8.17% |
| NAV per Share (₹) | 27.12 (as on Dec 31, 2025) | 20.93 | — | — |
Customer concentration: Top 3 customers contributed 20.93% of revenue in 9M FY26 (22.98% in FY25). Top 5 customers contributed 32.53% (35.01% in FY25). Top 10 customers contributed approximately 50.02% (52.78% in FY25).
6. Peer Comparison (as per RHP)
| Company | Total Income (₹ Mn) | Basic EPS (₹) | NAV (₹) | P/E* | RoNW (%) |
|---|---|---|---|---|---|
| CMR Green Technologies | 66,966.63 | 6.50 | 20.93 | NA (unlisted) | 31.08% |
| Gravita India Ltd | 39,806.10 | 45.11 | 280.44 | 37.36 | 15.12% |
| Pondy Oxides & Chemicals | 20,591.56 | 22.03 | 210.82 | 62.64 | 9.79% |
| Baheti Recycling Industries | 5,245.39 | 17.37 | 57.02 | 34.59 | 30.46% |
| Jain Resource Recycling | 64,654.39 | 7.11 | 22.44 | 76.20 | 30.55% |
*P/E based on closing price on May 12, 2026 divided by Diluted EPS as on March 31, 2025. Industry P/E range: Lowest 34.59, Highest 76.20, Average 52.70.
7. Objects of the Offer
Since this is a pure Offer for Sale, the company will not receive any proceeds from the IPO. The stated objects are:
- To carry out the Offer for Sale of up to 3,28,58,323 equity shares by the selling shareholders.
- To achieve the benefits of listing the equity shares on BSE and NSE, including enhanced visibility, brand image and liquidity for existing shareholders.
Because no fresh capital is being raised, a monitoring agency has not been appointed for the offer.
8. Industry Outlook (as per ICRA Report cited in RHP)
The recycled aluminium market in India reached a volume of 2.16 million MT in FY2025 (USD 4.92 billion). Per ICRA, it is expected to reach 3.71 million MT by FY2030, reflecting a CAGR of 11.2% in volume and 13.2% in value over FY2026–FY2030. Recycled aluminium’s share of total Indian aluminium demand is projected to rise from around 40.8% in FY2025 to about 44.9% by FY2030.
The Government of India has notified a framework mandating minimum recycled content in non-ferrous metals starting FY2028, initially at 5% with plans to escalate to 10–25% by FY2031. Recycled aluminium emits only ~0.3 tonnes of CO₂ per tonne against ~14 tonnes for primary aluminium, and has roughly 90% lower capex intensity – per the ICRA Report, this positions secondary aluminium as the most cost-effective decarbonisation route for the industry.
9. Pros and Cons
Pros (Strengths as disclosed in RHP)
- Market leadership: Largest non-ferrous metal recycler in India by installed capacity as of March 31, 2025; installed capacity ~4x the nearest domestic competitor in recycled aluminium (Source: ICRA Report).
- Scale advantage: 13 strategically located manufacturing facilities with installed capacity of 6,05,850 MTPA as of December 31, 2025.
- Marquee client base: Long-standing relationships with Maruti Suzuki, Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield, Endurance Technologies, Craftsman Automation, India Yamaha Motor, and others.
- Niche capability: One of only a handful of Indian players supplying liquid aluminium alloy directly to customer premises – high technical entry barrier.
- JV-backed technology: Strategic joint ventures with Toyota Tsusho, Nikkei MC Aluminium, and Nippon Light Metal provide technological and market access.
- Diversified supply chain: 198 global scrap suppliers across 73 countries in FY25, reducing single-source dependency on raw material.
- Strong return profile: RoNW of 31.08% in FY25 and 24.92% in 9M FY26 (not annualised) – higher than several listed peers per the RHP.
- Industry tailwinds: Government-mandated recycled content rules from FY2028 and structural decarbonisation push favour secondary aluminium producers (Source: ICRA Report).
- Improved profitability trajectory: EBITDA grew from ₹2,070.14 million in FY23 to ₹3,037.17 million in FY25; 9M FY26 EBITDA already at ₹3,244.38 million.
Cons (Risks as disclosed in DRHP)
- Pure OFS – no fresh capital: The company itself receives no money from the IPO. Proceeds go entirely to selling shareholders, including a near-complete exit by Global Scrap Processors Limited (Investor Selling Shareholder).
- Sharp historical net worth erosion: Net worth fell from ₹11,951.89 million in FY2023 to ₹3,175.35 million in FY2024 (Risk Factor 14 in RHP), primarily due to a non-cash goodwill impairment of ₹12,396.27 million.
- FY2024 reported loss: The company reported a loss of ₹8,385.57 million in FY2024 due to the exceptional item.
- Customer concentration: Top 5 customers accounted for ~32.53% of revenue in 9M FY26; top 10 customers contributed ~50.02%. Loss of a major customer could materially impact revenue.
- Product concentration: Liquid aluminium alloys and aluminium alloy ingots contribute 81.85% of revenue in 9M FY26 – limited product diversification.
- Automotive industry dependence: Heavy reliance on the automotive industry as the primary end-user; cyclical downturns in auto sector would directly affect revenue.
- Single-customer plant risk: The Odisha Unit is entirely dependent on a single customer (Risk Factor 20).
- Raw material price & supply risk: Heavy dependence on imported scrap (198 suppliers across 73 countries) exposes the company to international scrap price volatility, currency risk, shipping cost increases, and import policy changes.
- Operational hazards: Melting and transportation of high-temperature liquid metal carries safety risks; accidents could disrupt operations.
- Outstanding litigation: Legal proceedings exist against the company, subsidiaries, directors, promoters and key management personnel, including a long-standing excise dispute with Central Excise, Faridabad-II, and a service-provider default claim.
- Rising leverage: Net Debt/Equity has risen from 0.15x in FY23 to 0.76x in 9M FY26.
- Declining asset turnover: Net Fixed Asset Turnover has fallen from 11.36x (FY23) to 7.51x (9M FY26), reflecting heavier capex relative to revenue.
- Industry data conflict of interest: The ICRA Report was commissioned and paid for by the company exclusively for this Offer (Risk Factor 26).
- Promoter & related-party transactions: The RHP discloses several related party transactions; some directors and promoters have interests beyond shareholding.
- Untraceable historical records: The company has disclosed it is unable to trace certain historical corporate records (Risk Factor 42).
- Geographical concentration of facilities: Concentration of plants in certain regions could disrupt operations in case of regional events.
- Price band & valuation not yet known: P/E, market cap, and NAV-after-offer cannot be evaluated until the price band is announced.
10. Things to Watch Before the Offer Opens
- Final Price Band announcement (expected before June 02, 2026).
- The implied P/E ratio at the upper band against the peer-group range of 34.59x – 76.20x.
- Anchor investor list and allocation – often an early sentiment indicator.
- Quantum of stake retained by promoters and Global Scrap Processors Limited post-Offer.
- Subscription trends across QIB, NII, Retail and Employee categories during June 03–05, 2026.
