Faridabad-based non-ferrous metal recycling company CMR Green Technologies is launching its IPO on June 3. However, the company has reduced the size of the IPO compared to its earlier plan.
According to the red herring prospectus (RHP), the IPO will remain open for investors from June 3 to June 5. Anchor investors will be able to place bids on June 2.
IPO Size Reduced
Earlier, the company planned to issue 42.9 million equity shares. Now, the IPO will be completely an offer for sale (OFS) of up to 32.8 million shares.
Under this OFS, promoters and one investor shareholder will sell their stake in the company. Promoters Mohan Agarwal, Gauri Shankar Aggarwala HUF, and Mohan Agarwal HUF will together sell 6.459 million shares.
Mauritius-based Global Scrap Processors will sell around 26.4 million shares.
Company Will Not Receive Any Funds
Since the IPO is fully an OFS, the company itself will not receive any money from the issue. The entire amount raised will go to the promoters and investors selling their shares.
At present, the promoter and promoter group own around 87 percent stake in the company, while Global Scrap Processors holds the remaining 13 percent.
Second Attempt at IPO
This is the second time CMR Green Technologies is trying to launch an IPO. Earlier, the company had filed draft papers in September 2021.
At that time, the company planned to raise ₹300 crore through fresh shares and also launch an IPO of up to 33.4 million shares. Although SEBI approved the IPO in February 2022, the company did not go ahead with the launch.
What Does the Company Do?
CMR Green Technologies works in scrap processing and manufactures aluminium alloys, zinc alloys, and metals like stainless steel, copper, brass, lead, and magnesium.
The company mainly supplies to automobile sector OEMs and Tier-1 suppliers. Its customers include Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield, Endurance Technologies, Rockman Industries, and Craftsman Automation.
Where Will the Shares Be Listed?
The company’s shares will be listed on both the BSE and NSE.
The book running lead managers for the IPO are ICICI Securities, Equirus Capital, and Motilal Oswal Investment Advisors
