CMR Green Technologies IPO Subscribed 90% On Day 1; Strong GMP, Anchor Backing Keep Issue in Demand

Mumbai, June 3:The Rs 630.9-crore initial public offering (IPO) of CMR Green Technologies witnessed robust investor interest on the first day of bidding, with the issue being subscribed 90% by afternoon on Wednesday. The healthy response comes amid strong grey market premiums (GMP), favourable brokerage reviews and solid participation from anchor investors ahead of the public issue.

The CMR Green Technologies IPO, which opened for subscription on June 3 and will close on June 5, is priced in the range of Rs 182-192 per share. The issue is entirely an offer-for-sale (OFS), meaning the proceeds will go to the selling shareholders and not to the company.

Market participants said the strong initial demand suggests investors remain keen on companies linked to sustainability and recycling themes, particularly those with established operating histories and exposure to the automotive sector.

Anchor Investors Provide Confidence

Graphical display of bids received (indicates bidding position and not necessarily the subscription to the issue). Source: NSE

Ahead of the IPO opening, CMR Green Technologies raised around Rs 188 crore from anchor investors, including leading domestic institutional players. Some of the investors include HDFC Mutual Fund, Nippon Indian Mutual Fund, SBI Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, and Goldman Sachs. The strong anchor book has helped boost investor confidence and set a positive tone for the public offering.

Institutional participation is often viewed as an indicator of confidence in a company’s business model and long-term prospects. In the case of CMR Green Technologies, the anchor response has complemented positive brokerage commentary and a rising GMP, helping drive subscription momentum on the first day itself.

Analysts note that strong anchor participation can also encourage retail and high-net-worth investors to participate in the issue.

GMP Signals Positive Listing Expectations

The IPO has attracted significant attention in the grey market, according to reports, with the stock commanding a healthy premium of 33% over the upper end of the issue price. While GMP is an unofficial indicator, it often reflects prevailing market sentiment and listing expectations.

The strong premium suggests investors are optimistic about the company’s prospects and expect healthy demand to continue through the subscription period.

The positive sentiment also comes at a time when primary market activity has picked up, with investors increasingly looking for opportunities in companies operating in niche growth segments.

Business Model and Growth Outlook

CMR Green Technologies is among India’s leading non-ferrous metal recycling companies and a major producer of recycled aluminium products. The company supplies products primarily to automotive manufacturers and industrial customers, benefiting from growing demand for lightweight and sustainable materials.

The company is well positioned to capitalise on rising adoption of recycled metals, driven by environmental regulations, sustainability goals and cost efficiencies. Increasing demand from the automotive sector, particularly as manufacturers focus on reducing emissions and improving resource efficiency, is expected to support long-term growth.

Brokerages covering the issue have highlighted the company’s established market presence, strong customer relationships and favourable industry outlook. However, analysts have also cautioned that commodity-price volatility and customer concentration remain key risks.

What Brokers Think

Most brokerage houses have maintained a positive stance on the IPO, citing the company’s leadership in the recycling segment, attractive industry dynamics and healthy financial profile. The strong Day 1 subscription, anchor participation and healthy GMP have further strengthened sentiment.

With the issue already subscribed 90% on the opening day, investors will closely track demand from retail, non-institutional and qualified institutional buyers over the remaining subscription period. A strong finish could pave the way for a robust listing, although long-term performance will ultimately depend on execution, industry growth and earnings delivery.

Source:

• https://www.nseindia.com/market-data/issue-information?symbol=CMRGREEN&series=EQ&type=Active