CMR Green Technologies IPO

The company has built a nationwide manufacturing footprint with facilities spread across Haryana, Rajasthan, Gujarat, Uttarakhand, Tamil Nadu, Odisha, Andhra Pradesh and Maharashtra. This widespread network allows it to source scrap efficiently and supply customers across major automotive and industrial clusters.

CMR Green Technologies is particularly known for supplying recycled aluminium alloys to automotive OEMs and Tier-1 component manufacturers. The business has become an important part of India's circular economy by converting metal scrap into usable industrial raw materials.

Key Highlights

• Leading non-ferrous metal recycler in India by installed capacity.

• Among the largest aluminium recyclers globally by installed capacity.

• Strong presence in recycled aluminium alloys.

• Supplies both liquid and solid aluminium alloys.

• Extensive manufacturing footprint across India.

• Strong relationships with automotive OEMs and Tier-1 suppliers.

India's Growing Aluminium Recycling Opportunity

The global manufacturing industry is increasingly focusing on sustainability, carbon reduction and circular resource utilization. Aluminium recycling is emerging as one of the most attractive segments because recycled aluminium requires significantly less energy than primary aluminium production.

According to industry data cited in the offer document, the Indian recycled aluminium market reached approximately 2.16 million metric tonnes in FY25. The market consists of:

Key Growth Drivers

Automotive Lightweighting

Vehicle manufacturers are increasingly replacing heavier metals with aluminium to improve fuel efficiency and support electric vehicle adoption.

Sustainability Regulations

Governments worldwide are encouraging recycling and waste reduction, creating long-term demand for recycled metals.

EV Adoption

Electric vehicles require lightweight materials, creating additional demand for recycled aluminium.

Import Substitution

Domestic recycling reduces dependence on imported raw materials and supports manufacturing self-sufficiency.

Industry Outlook

Industry experts expect aluminium recycling to remain one of the fastest-growing segments within the broader metal recycling ecosystem. As environmental regulations tighten and ESG considerations become more important, recycled metals are likely to gain greater acceptance across automotive, engineering and industrial sectors.

For CMR Green Technologies, this creates a favourable backdrop because the company already possesses large-scale infrastructure and established customer relationships.

CMR Green Technologies transforms metal scrap into value-added products that are supplied to automotive and industrial customers.

The company manufactures:

Recycled Aluminium Alloys

Available in:

• Liquid form

• Ingot form

These products are widely used in:

• Engine components

• Transmission systems

• Automotive castings

• Industrial applications

Aluminium Billets

The company has expanded into aluminium billets, which are used in extrusion applications across both automotive and non-automotive industries.

Other Products

The company also deals in:

• Zinc alloy ingots

• Stainless steel scrap

• Copper scrap

• Brass scrap

• Magnesium scrap

• Lead scrap

• Dross products

Manufacturing Network

CMR operates numerous recycling facilities across India including:

• Manesar

• Bhiwadi

• Haridwar

• Halol

• Bawal

• Chennai

• Vallam

• Tirupati

• Odisha

• Pune

• Tatarpur

• Vanod

This network enables proximity to customers and scrap suppliers while reducing transportation costs.

Customer Base

The company serves several leading OEMs and Tier-1 suppliers.

Notable customers include:

• Hero MotoCorp

• Honda Cars India

• Royal Enfield

• Yamaha

• Toyota Industries Engine India

• Rockman Industries

The company states that some customer relationships extend beyond a decade.

Competitive Strengths

Scale Advantage

CMR reportedly has approximately four times the installed capacity of the nearest domestic recycled aluminium competitor.

Market Leadership

The company holds the highest market share in India's secondary aluminium market based on FY25 revenue among peers.

Geographic Diversification

Operations span northern, western, southern and eastern India.

Long-Term Customer Relationships

Stable customer relationships support recurring revenue generation.

The business operates within a highly regulated environment involving environmental, industrial and corporate compliance.

Major regulatory areas include:

Environmental Regulations

• Pollution control approvals

• Hazardous waste management

• Air and water pollution norms

• Recycling and waste processing regulations

Factory and Labour Laws

• Factory licenses

• Occupational health and safety compliance

• Employee welfare regulations

Corporate Regulations

• Companies Act, 2013

• SEBI regulations after listing

• Stock exchange compliance requirements

Tax Regulations

• GST

• Income tax

• Customs duties

• Import-export compliance

Because recycling involves handling industrial scrap and processing waste materials, environmental compliance remains especially important for long-term operations.

Every IPO comes with risks, and CMR Green Technologies is no exception.

1. Raw Material Availability Risk

The business depends on continuous access to metal scrap. Any disruption in scrap availability could affect production volumes and profitability.

2. Commodity Price Volatility

Metal prices can fluctuate significantly. Sudden movements may impact margins and inventory values.

3. Working Capital Intensity

The business requires substantial working capital for procurement, inventory and receivables management.

Trade receivables stood at approximately:

4. Customer Concentration

While the company serves many customers, the top customer groups contribute a meaningful share of revenue.

5. Interest Rate Risk

The company uses borrowing facilities that generally carry floating interest rates. Rising interest rates could increase financing costs.

6. Historical Record Risk

The company has disclosed that certain historical corporate records and transfer documents could not be traced, which may create future compliance-related uncertainties.

The promoters of CMR Green Technologies are:

• Mohan Agarwal

• Pratibha Agarwal

• Akshay Agarwal

• Raghav Agarwal

The Agarwal family has played a central role in building the recycling platform over the past two decades.

Promoter Selling Shareholder

• Mohan Agarwal

Promoter Group Selling Shareholders

• Gauri Shankar Agarwala HUF

• Mohan Agarwal HUF

The IPO is entirely an Offer for Sale, meaning existing shareholders are selling shares and the company itself will not receive any proceeds.

The company operates through a diversified group structure consisting of subsidiaries and joint ventures.

Material Subsidiaries

• CMR Nikkei India Private Limited

• CMR Toyotsu Aluminium India Private Limited

• CMR Aluminium Private Limited

Other Subsidiaries

• CMR NLM Eco Aluminium Private Limited

• CMR Welfare Foundation

• CMR Green LLC

Joint Ventures

• CMR-Chiho Recycling Technologies Private Limited

• CMR Chiho Industries India Private Limited

• Nikkei CMR Aluminium India Private Limited

These partnerships provide access to technology, customer relationships and strategic growth opportunities.

Strong management execution has been a key factor behind CMR's growth.

Chairman & Managing Director

Mohan Agarwal

He has been associated with the company since its formative years and continues to lead overall strategy and operations.

Chief Financial Officer

Yugal Kishor Garg

Responsible for finance, treasury, accounting and capital allocation.

Company Secretary & Compliance Officer

Srishti Saxena

Oversees corporate governance, compliance and investor-related matters.

The company has established governance structures aligned with public market requirements.

Audit Committee

Responsible for:

• Financial reporting oversight

• Internal controls

• Auditor interactions

• Risk management review

Nomination & Remuneration Committee

Handles:

• Executive compensation

• Board appointments

• Succession planning

CSR Committee

Oversees social responsibility initiatives and statutory CSR obligations.

Stakeholders Relationship Committee

Focuses on:

• Investor grievances

• Shareholder communication

• Regulatory compliance

For a company operating multiple recycling and manufacturing facilities across India, legal and regulatory compliance is a critical aspect of business operations.

CMR Green Technologies has disclosed various legal proceedings involving the company, subsidiaries, tax authorities, environmental authorities, and other regulatory bodies. Most of these matters relate to routine business operations, taxation, environmental compliance, labor matters, and commercial disputes.

Joint Venture Dispute

One notable matter relates to the company's joint ventures with Chiho Environmental Global Holdings Limited (CEG).

The company entered into joint venture arrangements for electric motor recycling through:

• CMR-Chiho Recycling Technologies Private Limited

• CMR-Chiho Industries India Private Limited

The ventures reportedly failed to achieve planned operational milestones following disruptions caused by the pandemic and issues related to technology transfer and scrap sourcing. The company has disclosed claims running into substantial amounts against the foreign partner, while counterclaims have also been raised.

Historical Corporate Records

The company has disclosed that certain historical share transfer records dating back to 2007 could not be traced. While management has reconstructed records through certifications and available documentation, this remains a disclosed risk.

Investor Takeaway

The disclosed legal matters do not appear unusual for a manufacturing company of this scale. However, investors should continue monitoring:

• Tax disputes

• Environmental matters

• Joint venture litigation

• Corporate compliance matters

The company operates under numerous approvals and registrations necessary for metal recycling and manufacturing activities.

Major Approvals Include

Environmental Permissions

• Pollution Control Board approvals

• Waste management authorizations

• Air and water consent approvals

Factory Approvals

• Factory licenses

• Fire safety certifications

• Industrial development permissions

Business Registrations

• GST registrations

• Import-export registrations

• Corporate registrations

Industry-Specific Licenses

• Metal recycling permissions

• Scrap handling approvals

• Hazardous material permissions wherever applicable

The company states that its manufacturing facilities operate under the required statutory approvals necessary for ongoing business activities.

CMR Green Technologies has delivered substantial scale over the last few years, supported by increasing demand for recycled aluminium products.

The company has become one of the largest organised players in India's aluminium recycling ecosystem.

Revenue Trend

Revenue growth has been driven by:

• Capacity expansion

• New customer additions

• Higher recycled aluminium demand

• Geographic expansion

• Increased penetration among automotive customers

The company's top ten customers contributed approximately 52.78% of FY25 revenue, reflecting strong customer relationships.

Profitability Trend

Profitability has generally benefited from:

• Economies of scale

• Higher capacity utilization

• Better product mix

• Long-term customer contracts

However, margins remain influenced by:

• Aluminium price fluctuations

• Scrap availability

• Energy costs

• Freight costs

• Interest expenses

Like many manufacturing businesses, CMR utilizes a combination of working capital and term borrowings.

Borrowings are primarily used for:

• Inventory procurement

• Capacity expansion

• Plant and machinery investments

• Working capital requirements

Interest Rate Exposure

A significant portion of borrowings carries floating interest rates.

This means:

• Rising interest rates can increase finance costs.

• Profitability may be affected during tightening monetary cycles.

The company has specifically identified interest-rate risk as a material financial risk.

Debt Assessment

The company's debt profile appears largely linked to expansion and working capital requirements rather than distress funding.

Investors should nevertheless monitor:

• Debt-to-equity ratio

• Interest coverage

• Working capital cycle

• Cash conversion efficiency

Cash flow quality is particularly important for manufacturing and recycling businesses.

Liquidity Position

As of December 31, 2025:

This provides meaningful liquidity support for operations.

Working Capital Characteristics

The business naturally requires:

• Large inventory holdings

• Continuous scrap procurement

• Credit extended to customers

This results in a significant working-capital cycle.

Trade Receivables

Receivables have grown alongside business expansion, which is expected in a scaling manufacturing company.

Cash Flow Quality Assessment

Positive factors:

• Large customer base

• Established OEM relationships

• Strong market position

Risks:

• Delayed collections

• Commodity price swings

• Inventory funding needs

The offer document discusses multiple key performance indicators used internally to assess business performance.

Investors should pay particular attention to the following:

EBITDA Margin

Measures operational profitability before financing and accounting adjustments.

Higher margins generally indicate:

• Better operating efficiency

• Strong pricing power

• Effective procurement management

Return on Net Worth (RONW)

Measures profitability relative to shareholder capital.

A higher RONW generally indicates efficient capital deployment.

Net Asset Value (NAV)

Reflects book value per share based on net worth.

Asset Turnover

Important for manufacturing companies because it indicates how efficiently plants and machinery generate revenue.

Working Capital Ratios

Critical due to the nature of scrap procurement and inventory management.

Investors should compare these ratios with listed peers after the final price band is announced.

Management identifies several factors influencing future performance.

1. Strengthening Customer Relationships

The company has built long-standing relationships with:

• Hero MotoCorp

• Honda Cars India

• Royal Enfield

• Yamaha

• Toyota Industries Engine India

• Rockman Industries

Some relationships reportedly extend beyond ten years.

2. Capacity Expansion

Recent investments in:

• Tirupati

• Odisha

have expanded the company's ability to serve additional aluminium product categories.

3. Expanding Beyond Cast Alloys

Historically, the company was primarily focused on cast alloy applications.

Growth opportunities now include:

• Extrusion billets

• Rolled alloy products

• Additional industrial applications

This significantly expands the addressable market.

4. Sustainability-Led Growth

The company is positioning itself as a key beneficiary of:

• Decarbonization initiatives

• ESG investing

• Circular economy adoption

• Green manufacturing trends

One of the most important points for investors is understanding where IPO proceeds will go.

Key Observation

This IPO is entirely an Offer for Sale (OFS).

The company itself will not receive any proceeds from the issue.

What Does This Mean?

The money raised from investors will primarily go to:

• Existing promoter selling shareholders

• Promoter-group shareholders

• Investor shareholder Global Scrap Processors Limited

and not to the company's balance sheet.

Implication for Investors

Positive:

• No dilution for fund-raising purposes.

• Existing shareholders are monetizing part of their holdings.

Neutral/Negative:

• No fresh capital enters the company.

• No debt reduction through IPO proceeds.

• No direct funding for future expansion.

Investors therefore need to evaluate the business on its operational strength rather than expecting balance-sheet improvement from IPO proceeds.

The final price band had not been announced at the time of the document.

Management has highlighted several qualitative strengths supporting valuation.

Valuation Drivers

Market Leadership

Largest player in the domestic secondary aluminium market by revenue among peers.

Capacity Advantage

Approximately four times the installed capacity of the nearest domestic competitor.

Strong Entry Barriers

Recycling businesses require:

• Technical expertise

• Environmental approvals

• Customer approvals

• Scrap sourcing networks

Customer Relationships

Long-standing OEM and Tier-1 supplier relationships create switching costs.

Sustainability Premium

The business is aligned with global ESG and recycling trends.

Valuation Factors Investors Should Compare

Once the price band is released, compare:

Face Value

₹2 per equity share.

Outstanding Shares Before IPO

Offer Size

Up to:

32,858,323 equity shares

through an Offer for Sale.

Key Selling Shareholders

CMR Green Technologies has historically been promoter-led, with the Agarwal family maintaining significant ownership and management control.

The IPO is structured as an Offer for Sale, meaning existing shareholders are reducing a portion of their holdings while continuing to remain invested in the business after listing.

Major Selling Shareholders

Ownership Observations

Continued Promoter Presence

Even after the IPO, promoters are expected to retain meaningful ownership, helping maintain management continuity.

Institutional Participation

The presence of Global Scrap Processors Limited as a significant investor indicates institutional participation in the company’s growth journey.

Public Float Creation

The IPO will create liquidity and a wider shareholder base, enabling institutional and retail participation.

CMR Green Technologies has disclosed a formal dividend policy applicable after listing. Dividend distribution will depend on several factors including:

• Profitability

• Cash flow generation

• Working capital requirements

• Capital expenditure plans

• Debt obligations

• Regulatory requirements

Given the capital-intensive nature of recycling and manufacturing operations, investors should not view the stock purely as a dividend play.

Factors Influencing Future Dividends

Business Expansion

The company continues to invest in manufacturing infrastructure and capacity additions.

Working Capital Requirements

Large inventory and receivable cycles require significant capital deployment.

Debt Servicing

Borrowing obligations may influence future payout decisions.

Industry Growth Opportunities

Management may choose reinvestment over aggressive dividend distribution if attractive growth opportunities exist.

For long-term investors, earnings growth may be more important than near-term dividend yield.

Like many large industrial groups, CMR Green Technologies undertakes transactions with subsidiaries, joint ventures and other related entities in the ordinary course of business.

Nature of Related Party Transactions

The disclosed transactions include:

Sale of Goods

Transactions involving aluminium products and related materials among group entities.

Purchase of Raw Materials

Procurement arrangements between subsidiaries and group companies.

Sale and Purchase of Assets

Property, plant and equipment transfers within the group.

Loans and Advances

Inter-company funding arrangements where applicable.

Reimbursement Transactions

Expense allocations and operational cost sharing.

Management Position

The company states that these transactions are generally conducted on arm’s-length terms and are reviewed under applicable governance mechanisms.

Investor Perspective

Related-party transactions are common in diversified industrial groups. Key points investors should monitor after listing include:

• Transaction transparency

• Pricing fairness

• Audit committee oversight

• Growth in transaction volumes

The company operates through a network of strategic agreements that support manufacturing, supply chain management and business expansion.

Joint Venture Agreements

Important partnerships include:

Nikkei Partnership

Supports aluminium-related manufacturing and customer access.

Toyotsu Partnership

Provides strategic relationships within the automotive supply chain.

Chiho Partnerships

Originally intended to support electric motor recycling operations. However, certain ventures have faced operational challenges and disputes.

Banking and Financing Agreements

The company has entered into various:

• Working capital agreements

• Term loan arrangements

• Security creation agreements

• Banking facilities

These support procurement, inventory management and expansion activities.

Customer Supply Agreements

Long-term relationships with OEMs and Tier-1 suppliers form a critical part of the business model.

Upon allotment, shareholders will enjoy rights available under the Companies Act, SEBI regulations and the company’s

Articles of Association.

Key Rights Include

Voting Rights

One vote per equity share held.

Dividend Rights

Participation in dividends declared by the company.

Rights Issue Participation

Eligibility to subscribe to future rights offerings.

Bonus Shares

Eligibility for bonus share distributions when declared.

Capital Appreciation

Participation in growth of business value and share price appreciation.

Access to Information

Receipt of annual reports, financial statements and corporate disclosures.

Participation in Corporate Actions

Including mergers, demergers and other significant shareholder matters.

First Public Issue

This is the company’s first public market offering and there has been no prior trading market for its equity shares.

No Monitoring Agency Requirement

Since the IPO is entirely an Offer for Sale and no fresh capital is being raised by the company, appointment of a monitoring agency is not required.

Listing Approvals

The company has received in-principle approvals from both stock exchanges for the proposed listing.

Employee Participation

The company has created a separate reservation category for eligible employees, aligning employee interests with future business performance.