Faridabad-based metal scrap recycler CMR Green Technologies is set to finalize the basis of allotment for its highly anticipated initial public offering (IPO) on Monday, June 8. The public issue, which closed on June 5, garnered an overwhelming response from investors, attracting bids worth over Rs 56,200 crore.
The IPO was subscribed a remarkable 127.04 times overall, with various investor categories showing robust participation. Qualified Institutional Bidders (QIBs) led the charge, oversubscribing their portion 270.46 times. Non-Institutional Investors (NIIs) followed closely with a 172.35 times subscription. Retail investors, while showing strong interest, subscribed their quota 27.03 times, and the employee portion was booked 18.53 times.
Allotment Odds for Investors
Given the significant over-subscription across all segments, the probability of receiving an allotment is relatively low for individual investors:
- Retail Category: Approximately 1 investor out of 20 will receive 78 shares. (Probability: 5%)
- Small HNI Category: About 1 investor out of 132 will get 1,092 shares. (Probability: 0.75%)
- Big HNI Category: Roughly 1 investor out of 32 will be allotted 1,092 shares. (Probability: 3.13%)
Bidders can expect messages, alerts, or emails regarding the debit of their funds or revocations of their IPO mandate by Tuesday, June 9.
IPO Details and Company Background
CMR Green Technologies offered its shares in a price band of Rs 182-192 per share, with a lot size of 78 shares. The company successfully raised Rs 631 crore through this IPO, which was entirely an offer-for-sale of up to 3,28,58,323 equity shares.
The company specializes in the recycling of non-ferrous metals, holding a prominent position in the secondary aluminium segment. Its operations include manufacturing aluminium and zinc die-casting alloys, recycled aluminium alloys, zinc alloy ingots, and furnace-ready scrap composed of various metals like stainless steel, copper, brass, zinc, lead, and magnesium.
Grey Market Premium and Listing Expectations
Despite the bumper bidding, the Grey Market Premium (GMP) for CMR Green Technologies has seen a mild correction due to broader market sentiments. The company was last heard commanding a premium of Rs 69-70 in the unofficial market, suggesting a listing pop of 35-36 percent for investors. Earlier, the GMP was in the range of Rs 72-75 apiece.
Equirus Capital, Motilal Oswal Investment Advisors, and ICICI Securities served as the book-running lead managers for the IPO, with KFin Technologies acting as the registrar. The refund process for unsuccessful applicants is slated for June 9, and the company's shares are expected to make their stock market debut on June 10 on both the BSE and NSE.