CMR Green Technologies listed at a 43% premium to its IPO price, exceeding grey market expectations.
The ₹631-crore IPO was subscribed 127 times, reflecting strong investor demand.
Retail investors earned gains of over ₹20,900 per lot on listing day.
CMR Green Technologies Surges 43% On Debut After 127x IPO Subscription
The non-ferrous metal recycler debuted above expectations after its ₹631-crore IPO was subscribed 127 times, rewarding retail investors with gains of over ₹20,900 per lot
Summary
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CMR Green Technologies made a strong debut on the stock exchanges on Wednesday, listing at a premium of more than 43% over its initial public offering (IPO) price and exceeding grey market expectations.
Shares of the non-ferrous metal recycler were listed at ₹275.40 on the BSE, a premium of 43.44% over the issue price of ₹192 per share. The listing valued the company at a market capitalisation of ₹6,032.79 crore.
On the NSE, the stock opened at ₹268 per share, representing a premium of 39.58% over the IPO price.
The strong debut came after the company's ₹631-crore IPO received an overwhelming response from investors, with the issue being subscribed 127.04 times during the bidding period between June 3 and June 5.
The IPO attracted bids for 292.75 crore shares against 2.30 crore shares on offer, highlighting robust demand across investor categories.
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Investors Reap Strong Listing Gains
The listing generated substantial gains for investors who received allotments in the IPO.
A retail investor allotted one lot of 78 shares, acquired at a cost of ₹14,976, earned a listing gain of ₹6,505.20 based on the BSE listing price. Investors made ₹20,904 per lot on listing.
High-net-worth investors (HNIs) allotted 14 lots, comprising 1,092 shares, earned gains of ₹91,072.80 on an investment of ₹2,09,664.
The listing also surpassed grey market expectations. Ahead of the debut, the IPO was commanding a grey market premium (GMP) of ₹72-75 per share, indicating an expected listing gain of around 37-39%. The actual listing premium exceeded those estimates.
Strong Position In Recycling Industry
CMR Green Technologies is one of India's leading non-ferrous metal recyclers and secondary aluminium producers.
The company operates 13 recycling facilities across the country and has established a procurement network spanning India, Asia, Africa, the Middle East, Europe and the Americas.
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Its customer base includes several leading automotive original equipment manufacturers (OEMs) and Tier-I suppliers such as Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield, Endurance Technologies, Rockman Industries and Craftsman Automation.
Experts Advise Caution After Sharp Listing
While the strong listing reflects investor confidence in the company's business model and growth prospects, market experts cautioned against chasing the stock after its sharp debut.
Shivani Nyati, Head of Wealth at Swastika Investmart, said the listing underscores investor interest in the growing recycled metals industry but noted that the IPO was entirely an Offer for Sale (OFS), meaning the company did not receive any fresh capital from the issue.
"CMR Green Technologies made a strong stock market debut, listing at a premium of over 40% to its IPO price of ₹192 per share, reflecting strong investor interest in the company's position as a leading non-ferrous metal recycler and secondary aluminium producer," she said.
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Nyati added that some profit booking and short-term volatility could emerge following the sharp listing gains. She suggested that investors who received allotments may consider booking partial profits while retaining some exposure for the medium to long term, given the favourable industry outlook.
She also advised new investors to wait for a correction or consolidation before taking fresh positions and recommended maintaining a stop loss at the IPO price of ₹192 to protect gains.