CMR Green Technologies IPO Review || CMR Green Technologies Limited || Upcoming IPO - A Deep Dive

After waiting for what feels like ages, we're finally seeing the buzz around the CMR Green Technologies IPO. This video by Palash Bopche - WealthyFied, titled "CMR Green Technologies IPO Review || CMR Green Technologies Limited || Upcoming IPO," offers a comprehensive look into what's set to be a significant event in the sustainable living sector. But does it live up to the hype?

A Brief Overview

In this discussion, we learn that CMR Green Technologies is about to open its IPO from June 3 to June 5, with market listing anticipated on June 10. The IPO issue size is ₹630 crore. Interestingly, this is structured entirely as an Offer for Sale (OFS), meaning no new funds will go to the company itself. The promoter holding will dip slightly from 87% to 84%. This isn't a massive drop, but it does raise eyebrows.

The Business Model

CMR Green Technologies is a giant in the scrap metal recycling industry in India. Their core business? Recycling aluminum scrap into industrial-grade alloys, a necessity for the automotive and non-automotive sectors. Here's an interesting tidbit: they hold a staggering 30-35% market share in aluminum scrap products and a whopping 70% in liquid aluminum alloy supply. Impressive, right?

Financial Health

Financially, the company seems stable. In 2023, their revenue stood at ₹5900 crore, with projections for 2025 hitting around ₹6700 crore. Yes, there was a blip in 2024 due to accounting losses, but they bounced back in 2025. Yet, there's a catch. Their Return on Equity (ROE) is almost negligible, and profit margins are on the lower side. This begs the question: is this a red flag for potential investors?

Valuation and Market Perception

When it comes to valuation, the Price to Earnings (PE) ratio stands at 27 - a bit on the high end. Despite market downturns, their Grey Market Premium (GMP) remains at 20%. This could signal promising returns. However, should investors dive in headfirst based solely on this metric?

My Take on This IPO

Honestly, while the numbers provide some optimism, there's still a lot to consider. In my experience, an IPO that's entirely an OFS might not be the best bet for those seeking long-term growth. But here's the thing: every investment has its risks. Could this be the exception?

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