CMR Green Technologies IPO GMP Jumps 27% Before Opening Day; Can It Deliver Big Listing Gains?

Just a day before its launch, the CMR Green Technologies IPO is turning heads in the grey market with massive demand among investors. According to BSE data, the latest CMR Green Technologies IPO GMP is currently at Rs. 52.5 per share. This mainboard issue is opening for subscription on June 3rd, and is already on investors' radar.

CMR Green Technologies IPO GMP Today

The grey market premium is often considered an indicator of investor sentiment before an IPO opens. According to Investorgain, the CMR Green Technologies IPO GMP today was Rs. 52.5 as of June 2, implying that the shares are commanding a premium of more than 27% over the issue price in the unofficial market.

Investors, however, should note that grey market premiums can fluctuate significantly before listing GMP does not guarantee listing performance.

CMR Green Technologies IPO Details

CMR Green Technologies IPO is a book-built issue worth Rs. 630.88 crore.The public issue is entirely an Offer for Sale comprising 3.29 crore equity shares. Since the IPO is a pure OFS, the company itself will not receive any proceeds from the issue, with the funds going to the existing shareholders selling their stake.

The IPO will open for subscription on June 3 and close on June 5. Share allotment is expected to be finalized on June 8, while the stock is tentatively scheduled to list on the NSE and BSE on June 10.

The final issue price has been fixed at Rs. 192 per share. Investors can apply for a minimum lot size of 78 shares, requiring an investment of Rs. 14,976 for retail applicants.

Should You Subscribe to CMR Green Technologies IPO?

Brokerage opinions on the IPO are mixed despite the strong GMP. Domestic brokerage firm Swastika Investmart has assigned a "Neutral" rating to the issue.

In its IPO note, the brokerage said, "CMR Green Technologies has the largest capacities among industry players and enjoys a preferred partner status within its segment. The company's valuation appears attractive at a price-to-earnings multiple of 27.13 times compared with listed peers. Additionally, the company's turnaround in FY25 has been viewed as a positive development."

However, the brokerage further stated concerns around the company's sharp loss in FY24, thin operating margins and customer concentration risks, which could impact future earnings stability.

"Therefore, we assign a Neutral rating to the CMR Green Technologies IPO. High-risk investors may consider applying primarily for listing gains," the brokerage said.

About CMR Green Technologies

CMR Green Technologies Limited, formerly Grand Metal Industries Limited, also known as Century Metal Recycling (CMR), is a producer of aluminium and zinc die-casting alloys with a combined annual capacity of approximately 605,850 MT, headquartered in Faridabad, Haryana. Founded in 2005, the company operates 12 manufacturing plants (including 4 joint ventures with Japanese companies Toyota Tsusho Corporation and Nikkei MC Aluminium) and supplies primarily to automotive OEMs and Tier-1 manufacturers, with around 65% of sales coming from liquid aluminium alloy ingots in molten form.

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