India’s largest secondary aluminium recycler hits the market with a Rs 631 crore pure offer-for-sale, priced at the upper band of Rs 192.
CMR Green Technologies Ltd., India’s leading non-ferrous metal recycler with the highest market share in the domestic secondary aluminium market, opens for subscription on June 3 with the issue closing on June 5. The company holds an installed capacity roughly four times that of its nearest domestic competitor in the recycled aluminium space. Arihant Capital Markets recommends subscribing.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | June 3, 2026 |
| Issue Closes | June 5, 2026 |
| Price Band | Rs 182 – Rs 192 per share |
| Face Value | Rs 2 |
| Issue Size | Rs 630.88 crore (at upper cap) |
| Issue Type | Entirely Offer for Sale |
| Total Shares | 3,28,58,323 shares |
| Bid Lot | 78 shares and multiples thereof |
| Minimum Investment (Retail) | Rs 14,976 at upper band |
| Post-Issue Market Cap | Rs 4,205.87 crore (at upper cap) |
| Issue Constitutes | 15% of post-IPO equity |
| QIB / NII / Retail Split | 50% / 15% / 35% |
| BRLMs | Equirus Capital, ICICI Securities, Motilal Oswal Investment Advisors |
| Registrar | KFin Technologies Ltd. |
| Listing | BSE and NSE |
Since this is a pure Offer for Sale, no proceeds go to the company. The entire issue provides an exit to existing stakeholders and unlocks listing benefits. The company has reserved 1,30,182 shares (worth Rs 2.50 crore) for eligible employees at a discount of Rs 18 per share.
What the Company Does
CMR Green Technologies is India’s leading aluminium recycling company and the largest player in the domestic secondary aluminium market. It manufactures recycled aluminium alloys (in ingot and liquid form), aluminium billets, zinc alloy ingots, and segregated furnace-ready scrap of various metals, primarily serving automotive OEMs and Tier-1 suppliers.
As Arihant Capital Markets notes in its report, “CMR Green Technologies is the number one non-ferrous metal recycler in India based on installed capacity and enjoys the leading market share in the secondary aluminium market of India based on revenues.”
The company had an installed capacity of 6,05,850 MTPA as of December 31, 2025 — more than four times that of its nearest domestic rival — and commands an estimated 42–45% market share in the cast alloy segment catering to the automotive sector.
Aluminium recycling contributes the lion’s share of revenue at around 82% for 9M FY26, with the rest coming from other metals and materials. A key differentiator is the company’s liquid aluminium supply model, which creates a strong lock-in effect: because liquid aluminium cannot be stored and must be supplied within a roughly 25 km radius, customers become structurally dependent on CMR. Around 96–97% of revenues come from repeat customers.
The recycling story also carries a strong sustainability angle. India’s primary aluminium industry emits roughly 14 tonnes of CO₂ per tonne of aluminium, whereas recycled aluminium emits only about 0.3 tonnes, and secondary production requires around 90% lower capital expenditure than primary production.
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|
| Total Income | 5,889.9 | 5,968.4 | 6,696.7 | 6,291.0 |
| Net Profit / (Loss) | 104.5 | (838.6) | 155.0 | 162.4 |
| PAT Margin | 1.77% | (14.05)% | 2.32% | 2.59% |
Revenue has grown steadily over the reported periods. The sharp swing to a net loss in FY24 was attributed to an exceptional item provision that was subsequently no longer needed, after which the company cleaned up its balance sheet. Profitability recovered in FY25 and has continued through the first nine months of FY26.
Valuation and Outlook
At the upper band of Rs 192, the issue is valued at a P/E of around 21.3x based on annualised FY26 EPS of Rs 9.01, and at a P/BV of 7.08x on its NAV of Rs 27.12 as of December 31, 2025. The company lists Pondy Oxides, Gravita India, Baheti Recycling, and Jain Resource as peers, trading at P/E multiples of roughly 28x, 31x, 23x, and 37x respectively — though these are not strictly comparable on a like-for-like basis.
On its outlook, Arihant Capital Markets states in its note that “CMR is well placed to drive sustainable growth and further strengthen its industry leadership,” pointing to the Indian recycled aluminium market’s projected 11.2% volume CAGR between FY26 and FY30, the company’s expansion into extrusion billets and rolled alloy recycling that has widened its addressable market by roughly 0.93 million MT, and its differentiated liquid aluminium supply model. The brokerage has assigned a “Subscribe” rating to the issue.
Risks to Consider
The issue is entirely an Offer for Sale, meaning no fresh capital flows into the business to fund growth or reduce debt. The company reported a significant net loss in FY24, and while this was driven by an exceptional item, it highlights the earnings volatility that can affect the business. PAT margins remain thin at around 2–2.6%, typical of a high-volume recycling business but leaving limited buffer against raw material price swings. Customer concentration is a factor, with the top 10 customers contributing a little over half of revenues. On recent financials, the issue also appears fully priced against its listed peers.