New Delhi: A relatively obscure company has just become one of the biggest stock market success stories of the year. CMR Green Technologies Limited, an aluminium recycling company based out of Haryana, has seen its shares list at a 40% premium, one of the strongest in the IPO market so far.
The IPO, which ran between 3-5 June, was oversubscribed 28.92 times, with investors seeking a slice of the pure Offer For Sale (OFS) company, with 3.28 crore shares on offer.
CMR Green is an industrial leader in metal recycling, processing lead, stainless steel, copper, brass and magnesium scrap metals to create aluminium alloys and zinc alloys. It has 13 recycling units across India, including original equipment manufacturers and Tier 1 suppliers across India. Royal Enfield, Bajaj Auto, Hero MotoCorp, Hona Cars India are amongst its core clients.
This sustainable supplier of aluminium and zinc offers investors a strong growth story, given the immense challenges with mining and the lack of reliable, consistent supplies of these metals.
With the rise of EVs, recycled aluminium is now highly prized by automotive manufacturers as they help keep the car’s weight as low as possible while helping to extend the battery range. CMR Green has also pioneered the ‘liquid aluminium delivery’ system where it loads molten, superheated liquid aluminum on custom-built trucks and drives it directly to clients’ assembly lines, cutting almost 15% in energy costs.
For the markets, CMR Green’s spectacular listing shows how the markets are increasingly looking to sustainable industrial manufacturing. With its long term demands and supply fundamentals now solid, CMR Green offers investors an opportunity to earn stellar returns in a market that has seen overvalued stocks and IPOs come out in the last year and a half.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
