Issue Opens: June 3, 2026   |   Issue Closes: June 5, 2026   |   Listing: June 10, 2026

Price Band: ₹182 – ₹192 per share   |   Issue Size: ₹631 Crore   |   Market Cap: ~₹4,205 Crore

CMR Green Technologies Limited (CGTL) is poised to list on the BSE and NSE through a fully Offer-for-Sale (OFS) Initial Public Offering aggregating approximately ₹631 crore at the upper price band of ₹192 per share. Incorporated in 2005 and headquartered in Faridabad, Haryana, the company has established itself as India's foremost non-ferrous metal recycler, commanding the highest market share in the domestic secondary aluminium segment by revenue in FY25.

The IPO represents CGTL's second attempt at going public — having previously filed a DRHP in September 2021, received SEBI approval in February 2022, and subsequently missing the listing deadline. The re-filed DRHP was submitted to SEBI on August 29, 2025, culminating in the current offering. The IPO is entirely an OFS, meaning the company will receive no proceeds from the issue; all funds flow directly to the selling shareholders.

CGTL reported consolidated revenue of ₹6,666.5 crore in FY25, a 12% year-on-year improvement over FY24. Profit After Tax recovered strongly to ₹155 crore in FY25 following an exceptional goodwill impairment loss of ₹1,239.6 crore in FY24 that resulted in a reported loss of ₹838.6 crore. For the nine months ended December 31, 2025, the company recorded revenue of ₹6,291 crore and PAT of ₹162.4 crore, reflecting continued momentum.

At the upper price band, the stock is valued at approximately 27x FY25 earnings and ~19x annualised FY26 earnings — broadly in line with peers such as Pondy Oxides (28.1x) and Gravita India (31.4x). Grey market premium indicators suggest a listing premium of approximately 15–18%. The issue appears fairly to fully priced, making it suitable for medium-to-long-term investors with an appetite for circular economy / recycling sector exposure.

2.1 Corporate Background

CMR Green Technologies Limited was originally incorporated on August 23, 2005, as 'Grand Metal Industries Private Limited' under the Companies Act, 1956. The company was subsequently converted to a public limited company and renamed 'Grand Metal Industries Limited' on May 28, 2020. Following a Scheme of Arrangement executed in connection with a merger undertaken in FY2020, the company adopted its current name — CMR Green Technologies Limited — pursuant to a fresh Certificate of Incorporation dated August 11, 2021, issued by the Registrar of Companies, NCT Delhi and Haryana.

The company's Corporate Identity Number (CIN) is U00337HR2005PLC085675. Its registered and operational headquarters are located in Faridabad, Haryana — a strategic location within proximity to the automotive manufacturing belt of northern India.

2.2 Business Operations

CGTL operates at the intersection of industrial recycling, secondary metallurgy, and sustainable manufacturing. Its primary business activities encompass:

•    Recycled Aluminium Alloys: Manufactured in both liquid and ingot form, these products contribute the most significant share of revenue. In FY25, liquid aluminium alloys and ingots together contributed approximately 78.4% of total revenue from operations.

•    Zinc Alloy Ingots: A secondary product line catering to die-casting applications, primarily in the automotive sector.

•    Furnace-Ready Scrap: Segregated and processed scrap of stainless steel, copper, brass, zinc, lead, and magnesium — supplied to industrial consumers for direct furnace charging.

•    Aluminium Billets: Extrudable aluminium billets serving both automotive and non-automotive end markets, including construction and industrial applications.

2.3 Infrastructure & Capacity

The company operates 13 recycling and processing facilities spread across India. CGTL has the largest installed capacity in the domestic secondary aluminium recycling space, estimated at approximately four times the installed capacity of its nearest domestic competitor as of March 31, 2025, per the ICRA Industry Report cited in the RHP. The company also ranks among the largest aluminium recyclers globally in terms of installed capacity.

Its procurement network is globally diversified, spanning domestic scrap aggregators as well as international sources across Asia, the Middle East, Africa, Europe, and the Americas. This diversified sourcing reduces dependency on any single geography or supplier for raw material availability.

2.4 Customer Base

CGTL primarily serves Original Equipment Manufacturers (OEMs) and Tier-1 automotive component manufacturers, reflecting the concentration of secondary aluminium demand in the Indian automotive sector. Notable long-standing customers include:

•    Honda Cars India Limited

•    Bajaj Auto Limited

•    Hero MotoCorp Limited

•    Royal Enfield Motors (Eicher Motors)

•    Maruti Suzuki India Limited

•    Endurance Technologies Limited

•    Craftsman Automation Limited

•    Rockman Industries Limited

•    Jindal Stainless Limited

The company's top three customers collectively contributed between 21% and 24% of total revenue from operations across FY23, FY24, FY25, and the nine-month period ended December 31, 2025, which constitutes a meaningful customer concentration risk.

2.5 Strategic Joint Ventures

CGTL has established strategic alliances through joint ventures, details of which are disclosed in the RHP. These joint ventures are designed to strengthen its sourcing capabilities, expand geographic reach, and deepen integration within the aluminium recycling value chain.

The following snapshot summarises the key parameters of the CMR Green Technologies IPO as disclosed in the Red Herring Prospectus:

3.1 Nature of the Issue — Offer for Sale (OFS)

The IPO is structured entirely as an Offer for Sale, comprising up to 3,28,58,323 equity shares of face value ₹2 each. The selling shareholders include:

•    Mohan Agarwal (Promoter and Managing Director)

•    Gauri Shankar Agarwala HUF (Promoter Group)

•    Mohan Agarwal HUF (Promoter Group)

•    Global Scrap Processors Ltd. (Financial Investor, holding ~13% pre-IPO)

Since the offering carries no fresh issue component, the company will not receive any proceeds from the IPO. All funds raised will flow exclusively to the selling shareholders. This structure, while standard in investor-exit-driven IPOs, limits the company's ability to signal growth capital deployment to the market.

3.2 Promoter Holdings

Prior to the IPO, the promoters and promoter group collectively held approximately 86.95% of the total equity capital of the company. The remaining 13.05% was held by Global Scrap Processors Ltd., an institutional investor. Post-IPO, promoter holding will decrease commensurate with the shares being offered under OFS.

3.3 Rationale for Listing

As stated in the RHP, the primary objectives of the IPO are:

•    To enhance the company's brand visibility and public profile through exchange listing on BSE and NSE.

•    To provide a liquid exit mechanism and return of capital to existing shareholders, including the promoter group and investor.

•    To enable the company to access public equity capital markets for future fundraising, if required.

The following consolidated financial summary is drawn from the RHP and covers FY23 through FY25 (fiscal years ending March 31) as well as the nine-month period ended December 31, 2025 (9M FY26):

* FY24 loss of ₹838.6 Cr reflects a non-cash goodwill impairment write-off of ₹1,239.6 Cr arising from the FY20 merger scheme. Underlying operations were not loss-making.

4.1 Revenue Growth

CGTL has demonstrated consistent revenue growth over the reported periods. Revenue from operations expanded from ₹5,868.5 crore in FY23 to ₹5,952.4 crore in FY24 (a modest 1.4% growth), and then accelerated to ₹6,666.5 crore in FY25 — representing a 12% year-on-year increase. For the nine-month period ended December 31, 2025, the company recorded revenue of ₹6,291 crore, which annualises to approximately ₹8,388 crore — implying robust momentum into FY26.

The primary revenue driver remains liquid aluminium alloys and aluminium alloy ingots, which constituted approximately 78.4% of revenue from operations in FY25, up from 73.1% in FY23. This increasing product mix concentration reflects both growing customer demand for liquid aluminium (delivered directly to foundries) and capacity optimisation by the company.

4.2 Profitability & Margins

The company's profitability trajectory requires careful contextualisation given the one-time FY24 impairment event. On an adjusted operating basis, CGTL has remained profitable throughout the reported period. The FY24 loss of ₹838.6 crore was entirely attributable to a non-cash goodwill impairment write-off of ₹1,239.6 crore, which arose from the FY2020 merger. Excluding this exceptional item, FY24 underlying operations would have remained profitable.

PAT margins remain thin at 2.3% in FY25 and 2.6% for 9M FY26, which is characteristic of the secondary metals processing and recycling industry globally — a sector defined by high revenue volumes, narrow spreads, and commoditised pricing. EBITDA for FY25 stood at approximately ₹303.7 crore, reflecting a reasonable margin on gross revenues. Return on Net Worth (RoNW) of 24.9% as of December 31, 2025, suggests efficient utilisation of shareholder equity.

4.3 Cash Flow Dynamics

Cash flow analysis reveals a more nuanced picture. The company reported negative operating cash flows of ₹92 crore in FY25, contrasted with positive operating cash flows of ₹74.1 crore in FY24 and ₹610.9 crore in FY23. The FY25 negative operating cash flow, despite strong PAT, points to working capital build-up — likely attributable to higher receivables or inventory levels associated with the sharp revenue growth.

Capital expenditure (reflected in investing activities) was ₹234.8 crore in FY25, suggesting continued investment in capacity or facilities. Financing activities generated ₹325.6 crore in FY25, indicating increased borrowings to fund operations and capex. Cash and cash equivalents stood at a lean ₹1.8 crore at end of FY25.

4.4 Debt Position

Total borrowings of ₹1,303.2 crore as of December 31, 2025, represent moderate leverage relative to the company's revenue scale. Given the working-capital-intensive nature of scrap-based metal processing, a degree of short-term borrowing is structurally normal. Investors should monitor the debt trajectory and interest coverage ratio over subsequent quarters post-listing.

5.1 Indian Aluminium Recycling Sector

India's aluminium scrap and secondary aluminium market is in a structurally compelling growth phase. The domestic aluminium scrap market was valued at approximately USD 3.8 billion in 2024 and is projected to reach USD 11.3 billion by 2034, expanding at a compound annual growth rate (CAGR) of approximately 10.9%. The broader primary and secondary aluminium market in India is forecast to grow from USD 17.5 billion in 2024 to USD 36.8 billion by 2035, at a CAGR of approximately 6.5%.

5.2 Demand Drivers

•    Automotive Electrification and Lightweighting: The automotive sector accounts for approximately 40% of secondary aluminium demand. The accelerating adoption of electric vehicles (EVs) and the industry-wide shift toward vehicle lightweighting are expected to drive substantial incremental demand for recycled aluminium alloys.

•    Infrastructure and Construction Expansion: India's National Infrastructure Pipeline and urban development programs are fuelling aluminium demand in construction, aerospace, and industrial applications.

•    Sustainability Mandates and ESG Compliance: Increasingly stringent environmental norms and ESG-linked procurement policies of large OEMs are compelling supply chains to shift toward recycled and low-carbon materials. Secondary aluminium production uses approximately 95% less energy than primary smelting.

•    Government Policy Tailwinds: Government initiatives such as the Production Linked Incentive (PLI) scheme for automotive and advanced chemistry cells, coupled with India's Nationally Determined Contribution (NDC) targets, favour circular economy investments.

5.3 Recycling Technology Advancement

Investment in advanced recycling technologies — including AI-driven scrap sorting, automated shredding systems, and high-efficiency rotary furnaces — is progressively improving recovery rates and product quality in the secondary aluminium space. CGTL's scale advantage positions it to lead this technological transition among Indian players.

5.4 Competitive Positioning

CGTL's listed peers in the Indian non-ferrous metal recycling space include Gravita India Limited, Pondy Oxides and Chemicals Limited, Baheti Recycling Industries Limited, and Jain Resource Recycling Limited. Among these, CGTL occupies a distinct position by virtue of its sheer scale — with installed capacity approximately four times that of its nearest domestic competitor. The company's integrated global sourcing infrastructure, long-term OEM relationships, and liquid aluminium delivery capability (bypassing remelting by customers) further differentiate its value proposition.

At ₹192 per share (upper price band), CMR Green Technologies is priced at approximately 27.1x FY25 earnings and approximately 19.4x annualised FY26 earnings. Both multiples fall within or below the range of listed peers — making the valuation broadly fair on a forward-earnings basis. The P/BV of 9.2x, while elevated, reflects the asset-light nature of the recycling business model.

The grey market premium (GMP) of ₹30–35 per share as of June 1, 2026, implies an indicative listing price of ₹222–₹227 per share — approximately 15–18% above the upper price band of ₹192. GMP is an unofficial, non-regulatory indicator and should not be the basis of investment decision-making. However, it signals healthy pre-listing market interest.

The OFS-only nature of the issue — where no funds accrue to the company — and the thin PAT margin profile (2–2.5%) may cap the premium command of the stock in the secondary market. Investors focused on absolute profitability metrics may find the valuation fully priced at current bands.

7.1 Key Strengths — Detailed

Market Leadership and Capacity Moat: CGTL's installed capacity, as documented in the ICRA industry report cited in the RHP, is approximately four times that of its nearest domestic competitor. This scale advantage creates significant barriers to entry for new participants and enables cost efficiencies through volume-driven procurement and processing.

Preferred Partner Status: The company's status as a 'most preferred partner' among major OEMs is underpinned by its ability to supply liquid aluminium alloys — which eliminates the need for downstream remelting by customers — improving delivery economics and just-in-time manufacturing compatibility.

Circular Economy Positioning: As global and domestic sustainability regulations tighten, CGTL's business model — which inherently reduces carbon emissions compared to primary aluminium production — positions it as a preferred ESG-compliant supplier to automotive OEMs with net-zero commitments.

7.2 Key Risk Factors — Detailed

Entirely OFS Structure: The complete absence of a fresh issue component means that the IPO raises no equity capital for the company. This limits post-IPO financial flexibility and may be perceived by the market as a promoter/investor liquidation event rather than a growth-oriented fundraise.

Historical Exceptional Loss (FY24): The ₹838.6 crore loss in FY24 — though driven by a non-cash, one-time goodwill impairment — may raise due diligence concerns for institutional investors regarding the quality of the FY20 merger and the initial goodwill recognition. Any recurrence of impairment charges, even partial, could significantly impact reported earnings.

Customer Concentration: Revenue dependence on three key customers for approximately 21–24% of total revenue exposes the company to counterparty-specific risks. Loss of any major OEM relationship could materially affect revenue and profitability.

Working Capital and Cash Flow Cyclicality: The negative operating cash flow in FY25 and the company's dependence on debt financing for working capital underscore the cyclical, capital-intensive nature of the business. Commodity price volatility in aluminium scrap and alloy prices further amplifies earnings variability.

Outstanding Litigation: As disclosed in the RHP, there is outstanding litigation against the company, its subsidiaries, directors, promoters, Key Managerial Personnel (KMPs), and Senior Management Personnel (SMPs). While litigation risk is common to companies of this scale, adverse judgments could impact financials, cash flows, and reputation.

8.1 Promoter Group

The company is promoted by the Agarwal family, with Mohan Agarwal serving as the principal promoter. The promoter group comprises Mohan Agarwal, Pratibha Agarwal, Akshay Agarwal, and Raghav Agarwal, with a collective pre-IPO holding of approximately 86.95%. The family has been instrumental in building CGTL from its origins as 'Grand Metal Industries' into the market-leading non-ferrous metal recycler it is today.

8.2 Board Composition

As a company preparing for a mainboard listing on BSE and NSE, CGTL is required to comply with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including requirements for independent director composition, audit committee functionality, and related party transaction disclosures. Detailed board composition and biographies of key management personnel are available in the RHP.

8.3 Dividend Policy

As disclosed in the RHP, CGTL adopted a formal dividend policy in August 2025. The company has not paid any dividends during the reported financial periods (FY23, FY24, FY25). Post-listing dividend decisions will be guided by the board's assessment of financial performance, future capital requirements, and investment opportunities.

9.1 Bull Case

Investors constructive on CGTL's long-term prospects may find comfort in the following:

•    India's strong economic growth trajectory, expansion of the automotive sector, and EV adoption drive incremental demand for secondary aluminium — directly benefiting CGTL as the market's largest domestic recycler.

•    The company's scale and capacity moat create a durable competitive advantage that new entrants cannot quickly replicate.

•    Recovery to profitability (₹155 Cr PAT in FY25 after FY24 exceptional loss) and continued momentum in 9M FY26 (₹162.4 Cr PAT) suggest earnings normalisation and potential for margin expansion.

•    ESG tailwinds and OEM sustainability mandates structurally favour CGTL's circular economy model, potentially commanding a premium valuation over the medium term.

9.2 Bear Case

Investors cautious on the issue may weigh the following concerns:

•    The OFS structure transfers no capital to the company, and promoter/investor stake sale could be interpreted as a loss of confidence in near-term value appreciation.

•    Thin PAT margins of 2–2.5% make earnings highly sensitive to commodity price movements in aluminium scrap and alloy markets. Any adverse global aluminium price cycle could compress margins meaningfully.

•    Working capital intensity and negative FY25 operating cash flow, despite strong revenue, raise questions about earnings quality and free cash flow generation.

•    At ~27x FY25 P/E, the stock is fully priced on trailing earnings; any earnings disappointment could result in de-rating.

9.3 Overall Assessment

CMR Green Technologies Limited presents a compelling strategic narrative — India's dominant non-ferrous metal recycler at an inflection point of demand growth driven by automotive electrification and sustainability imperatives. The company's scale, customer relationships, and ESG credentials are differentiating strengths that justify a market leadership premium.

However, the IPO's OFS-only structure, thin profit margins, customer concentration, and the overhang of FY24 exceptional losses temper the near-term investment case. At the upper price band of ₹192, the issue is assessed as fairly to fully priced based on trailing fundamentals, with the FY26 annualised P/E of ~19x offering a more reasonable entry valuation if current quarter momentum is sustained.

Suitable investor profile: Medium-to-long-term investors with appetite for the circular economy and recycling sector, comfortable with commodity-linked earnings cyclicality. Short-term listing gains are indicated by positive GMP, though GMP is an unofficial indicator and listing performance depends on overall market conditions at the time.

Key Source References

•    CMR Green Technologies Limited — Draft Red Herring Prospectus (DRHP) dated August 29, 2025, filed with SEBI. Available on BSE India website.

•    CMR Green Technologies Limited — Red Herring Prospectus (RHP) filed May 2026. Available via NSE / BSE and SEBI EDGAR.

•    ICRA Industry Report on Indian Aluminium Recycling Market, as cited in the RHP.

•    Market and peer comparator data sourced from publicly available exchange filings and financial data platforms as of May–June 2026.

DISCLAIMER

This report is prepared solely for informational and educational purposes, based on publicly available documents including the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) filed by CMR Green Technologies Limited with the Securities and Exchange Board of India (SEBI). This is NOT investment advice. Readers are urged to consult a SEBI-registered investment advisor before making any investment decisions. Past performance does not guarantee future results. The analyst/author holds no position in the company.