CMR Green Technologies Files Files Draft Papers; Looking for Sebi’s permission to float Ipo

CMR Green Technologies LTD, Non-Ferrous Metal Recycler, has submitted provisional articles to Markten Regulator Sebi who is looking for his approval to raise money via a first public offer (IPO).

The proposed IPO is entirely through an offer for sale (OFS) of 4.28 crore stock shares, according to the Red Herring Prospectus (DRHP) design that was submitted on Friday.

The sales shareholders are promoter Mohan Agarwal, certain members of the Promoter Group, and Investor Global Scrap Processors Ltd.

Promoters and entities of promotion groups currently have around 87 percent interest in CMR Green Technologies, while the remaining 13 percent are owned by global scrap processors.

Since the IPO is completely an OFS, the company itself does not receive any yield from the issue; All funds collected go directly to the sales shareholders.

In its concept documents, the company stated that the list is expected to improve its visibility, Merkmago and will offer the existing shareholders liquidity. This is the second attempt by CMR Green to tap the capital markets. In September 2021, the company had submitted concept documents for an IPO with a new edition of shares with a value of RS 300 Crore and an OFS of 3.34 Crore shares by promoters and investors. Although the proposal received the approval from Sebi in February 2022, the company finally decided not to continue with the public problem at that time.

CMR Green Technologies specializes in the processing and production of aluminum alloys (ingot and liquid), zinc alloys and oven -ready piece of stainless steel, copper, brass, lead and magnesium, among other things.

With 13 strategically located recycling facilities throughout India, CMR Green has developed a strong purchasing network about the domestic markets and international regions, including Asia, Africa, the Middle East, Europe and America. The customer base largely includes OEMs and suppliers of Tier-1 in the automotive sector.

The customers are Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Endurance Technologies, Rockman Industries and Craftsman Automation.

To support the public offer, Equirus Capital, Icici Securities and Motilal Oswal Investment Advisors have been appointed as chief managers.