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CMR Green Ltd. Technologies (CGTL) is the main non-ferrous metallic recycler by way of put in capability as of March 31, 2025 and it has the very best market share within the Indian secondary aluminium market by way of income from operations for the Fiscal 2025 amongst the peer corporations (Source: ICRA Report). CGTL has a capability benefit over home gamers, with an put in capability of round 4 instances of the closest competitor within the home recycled aluminium house, as of March 31, 2025 (Source: ICRA Report). The firm ranks among the many largest gamers within the world aluminium recycling trade by way of put in capability as of March 31, 2025 (Source: ICRA Report). It manufactures recycled aluminium alloys (in ingot and liquid type), zinc alloy ingots, dross and segregated furnace prepared scrap of stainless-steel, copper, brass, zinc, lead and magnesium, amongst others.
CGTL recycles used beverage cans scrap for fulfilling new metallic necessities of major producers. Due to the big financial, environmental and social benefits of recycling and the disadvantages of mining, major producers internationally are shifting to develop new sources of recycled metallic (Source: ICRA Report). The Company additionally produces aluminium billets that cater to each automotive and non-automotive sectors. These billets, made out of recycled aluminium, are uncooked supplies utilized in extrusion processes to create profiles for varied functions. Its billets are manufactured to satisfy trade requirements, guaranteeing steady mechanical properties, formability, and corrosion resistance. In Fiscal 2025, the overall recycled aluminium market reached a quantity of two.16 million MT in India. Of this, 1.01 million MT (46.7%) was from the solid alloy section, 0.59 million MT (27.5%) was in rolled section and 0.34 million MT (15.6%) was in extrusion section.
While it’s presently current within the solid alloy section of the automotive trade (the place it has roughly 42-45% market share by way of quantity bought for Fiscal 2025 as per ICRA Report), its entry into the extrusion has expanded serviceable market by an extra 0.34 million MT and rolled alloy segments have expanded its serviceable market by additional 0.59 million MT, offering new progress alternatives (Source: ICRA Report). With its new crops in Tirupati and Odisha, the corporate is now positioned to handle a wider spectrum of aluminium merchandise throughout the recycling worth chain. Aluminium is endlessly recyclable with none loss in high quality, making it a perfect materials for sustainable industrial use (Source: ICRA Report). India’s major aluminium trade emits 14 tonnes of CO₂ per ton of aluminium, one of many highest charges globally, whereas recycled aluminium emits solely 0.3 ton. (Source: ICRA Report)
Additionally, secondary aluminium manufacturing has roughly 90% decrease capital expenditure (capex) depth in comparison with major manufacturing, making it essentially the most cost-effective pathway to decarbonizing the trade. (Source: ICRA Report). Aluminium recycling has a lion share in CGTL’s complete income (round 82% for 9M-FY26) and the remainder is from different metals/supplies. Top 10 clients are contributing little over half in its prime strains. As of December 31, 2025, it had 784 workers on its payroll and extra 3956 contract employees in varied departments.
The firm is popping out with its maiden e book constructing route secondary IPO of 32858323 fairness shares of Rs. 2 every to mobilize Rs. 630.88 cr. on the higher cap. The IPO is solely as an Ofer for Sale (OFS); therefore no funds are going to the corporate. The firm has introduced a worth band of Rs. 182 – Rs. 192 per fairness shares of Rs. 2 every. The situation opens for subscription on June 03, 2026, and can shut on June 05, 2026. The minimal utility to be made is for 78 shares and in multiples thereon, thereafter. Post allotment, shares can be listed on BSE and NSE. The situation constitutes 15% of the post-IPO paid-up fairness capital. The OFS is being made to unlock its worth, present exit to its stakeholders and itemizing advantages.
The firm has reserved 130182 fairness shares (value Rs. 2.50 cr. on the higher cap) for its eligible workers and providing them a reduction of Rs. 18 per share. From the remainder, it has allotted no more than 50% for QIBs, not lower than 15percentfor HNIs, and never lower than 35% for Retail traders.
The joint Book Running Lead Managers (BRLMs) to this situation are Equirus Capital Ltd., ICICI Securities Ltd., and Motilal Oswal Investment Advisors Ltd., whereas KFin Technologies Ltd., is the registrar to the problem. Equirus Securities Pvt. Ltd., and Motilal Oswal Financial Services Ltd., are the syndicate members.
The firm has issued/transformed preliminary fairness shares at par worth. It has additionally issued bonus shares within the ratio of 11 for 1 in September 2021. The common price of acquisition of shares by the promoters/promoting stakeholders is Rs. NIL, Rs. 0.01, Rs. 0.02, Rs. 0.05, and Rs. 0.08 per share.
Post-IPO, its present paid-up fairness capital of Rs. 43.81 cr. will stay identical as it is a pure secondary situation. Based on the higher band of worth, the corporate is searching for a market cap of Rs. 4205.87 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has (on a consolidated foundation) posted a complete earnings/internet revenue/ – (loss), of Rs. 5889.90 cr. / Rs. 104.51 cr. (FY23), Rs. 5968.44 cr. / Rs. – (838.56) cr. (FY24), and Rs. 6696.66 cr. / Rs. 155.04 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it earned a internet revenue of Rs. 162.39 cr. on a complete earnings of Rs. 6291.00 cr. Drastic fall in its backside line to a adverse degree for FY24 is attributed to distinctive gadgets provision which was not wanted. The firm has cleaned its steadiness sheet and is poised for shiny prospects forward with ongoing growth spree.
For the final three fiscals, the corporate has posted a mean EPS of Rs. – (8.70) and a mean RoNW of – (71.73) %. The situation is priced at a P/BV of seven.08 based mostly on its NAV of Rs. 27.12 as of December 31, 2025, in addition to on publish IPO foundation.
If we attribute FY26 annualized tremendous earnings to its post-IPO absolutely diluted paid-up fairness capital, then the asking worth is at P/E of 19.43. Based on FY25 earnings, the P/E stands at 27.12. The situation seems absolutely priced based mostly on its latest monetary information.
For the reported intervals, whereas the corporate has posted PAT margins of 1.77% (FY23), – (14.05) % (FY24), 2.32% (FY25), 2.59% (9M-FY26), however its RoCE margins information is lacking from the supply doc.
All quantities in Indian Rupees crores
The firm not paid any dividends for the reported intervals of the supply doc. It has already adopted a dividend coverage in August 2025, based mostly on its monetary efficiency and future prospects.
As per the supply doc, the corporate has proven Pondy Oxides, Gravita India, Baheti Recycling, Jain Resource, as its listed friends. They are presently buying and selling at a P/E of 28.1, 31.4, 22.8, and 36.6 (as of May 29, 2026). However, they don’t seem to be really comparable on an apple-to-apple foundation. This comparability seems to be an eyewash.
The three BRLMs related to this situation have dealt with 77 points within the final 3 fiscals (together with the continued one), out of which 25 points closed beneath the supply worth on itemizing date.
CGTL is without doubt one of the main non-ferrous metallic recyclers having fun with highest market share in secondary aluminium market. It has the biggest capacities among the many trade gamers and enjoys most most popular associate standing. The firm marked losses for FY24 following changes of remarkable merchandise. It posted progress in its prime strains for the reported intervals. The situation seems absolutely priced based mostly on its latest monetary information. Investors can park funds for medium to long run.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is widely known for reviewing public points and non-convertible debentures (NCDs) within the major market. Drawing on over three a long time of market expertise and shut interplay with service provider bankers, his critiques concentrate on detailed basic and monetary evaluation of corporations, with a particular emphasis on SME public points.
Disclaimer: The data offered herein is solely for academic and informational functions and doesn’t represent a proposal, solicitation, or suggestion to purchase or promote any securities. Readers are suggested to seek the advice of a certified monetary advisor earlier than making any funding selections. Investments within the securities market are topic to market dangers. The writer doesn’t intend to put money into the securities mentioned.
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