CMR Green Technologies Ltd. (“CMR” or the “Company”), has filed its draft red herring prospectus (DRHP) in connection with its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI).
CMR Green Technologies Ltd is the largest metal recycler in the domestic aluminium recycling industry and amongst the largest in the world. (Source: CRISIL Report). It is primarily focused on the recycling of aluminum, which involves the processing of aluminium based metal scrap to manufacture aluminium alloys and supplying them both in liquid form as well as solid ingots, and on the manufacturing of zinc alloys.
CMR Green Technologies currently operate through 12 manufacturing facilities of which, 10 facilities undertake aluminium recycling operations, targeted towards the automotive manufacturing sector in India and overseas. The company is also in the process of setting up a cold refining plant in Gujarat to create further operational efficiency and reduce logistics cost. In addition, it set up a facility at Balasar, Gujarat in Fiscal 2020 through which, company undertake the business of dismantling of electric motors, primarily catering to local recycling industry and metal traders. Further, CMR Green Technologies is in the process of setting up a facility in the district of Kheda, Gujarat pursuant to its joint venture agreement dated July 16, 2020 with Kent Industrial Park Private Limited (“Kent”) which is intended to undertake dismantling, shredding and sorting of parts of ELVs.
The initial public offering consists of equity shares of face value of Rs. 2 each (“Equity Shares”) of CMR Green Technologies Limited. The offering comprises of a fresh issue aggregating up to Rs. 3,000.00 million (“Fresh Issue”). The offer for sale consists of up to 33,414,138 equity shares, comprising up to 3,432,730 equity shares by Gauri Shankar Agarwala, up to 3,009,235 equity shares by Mohan Agarwal, up to 3,344,870 equity shares by Kalawati Agarwal and up to 3,009,235 equity shares by Pratibha Agarwal (collectively, the “Promoter Selling Shareholders”), up to 538,885 equity shares by Gauri Shankar Agarwala (HUF) and up to 165,045 equity shares by Mohan Agarwal (HUF) (collectively, the “Other Selling Shareholders”), and up to 19,914,138 equity shares Global Scrap Processors Limited (the “Investor Selling Shareholder”).
The Company may, in consultation with the Book Running Lead Managers, consider a Pre-IPO placement for an amount aggregating up to Rs. 600.00 million for cash consideration (“Pre-IPO placement”) prior to filing of the Red Herring Prospectus with the ROC.
The net proceeds from the fresh issue are proposed to be utilised towards: (i) Repayment / prepayment, in full or in part, of certain borrowings availed by the Company; and (ii) General corporate purposes.
The Book Running Lead Managers to the offer are ICICI Securities Limited, Axis Capital Limited and JM Financial Limited.
The equity shares are proposed to be listed on BSE and NSE.