CMR Green Technologies IPO Listing: CMR Green Technologies made a blockbuster debut on the stock market on Wednesday, with its shares listing at Rs 268 on the NSE and Rs 275.40 on the BSE. The listing represented a premium of more than 40% over the IPO issue price of Rs 192 per share. Notably, the company’s debut exceeded grey market expectations, drawing investor attention not only to the stock but also to India’s rapidly expanding recycling industry.
In this exclusive conversation with ET Now, the company’s management discussed the future of aluminium recycling, expansion into wrought aluminium and zinc alloys, and the long-term opportunities emerging from India’s push toward sustainability and circular manufacturing.
Created with AI. Errors are possibleThe management also addressed concerns around margins, outlines growth expectations, and explains why sectors such as EVs, solar energy, construction and packaging could drive the next phase of growth for the recycling industry.
A New Growth Phase for the Recycling Industry
The company believes the Indian recycling sector is poised for accelerated growth over the next five years. Management attributed this outlook to government sustainability initiatives, efforts to reduce carbon emissions, and regulations such as Extended Producer Responsibility (EPR).
According to the company, aluminium recycling is becoming increasingly important because it requires significantly less energy than the production of primary aluminium. As a result, demand for recycled aluminium is expected to rise across industries including automobiles, packaging, construction, and energy.
Beyond Aluminium: Focus Shifts to Zinc Alloys
Interestingly, around 22% of the company’s total revenue in FY25 came from non-aluminium businesses. This share is expected to increase in the coming years as the company strengthens its focus on recycling multiple metals and producing value-added products.
Wrought Aluminium Seen as the Next Growth Engine
Analysts believe the company’s next major growth opportunity could come from the wrought aluminium segment, which is used in extrusion, sheets, foils, and beverage can manufacturing.
Management stated that the company has already entered this segment and is supplying products to the packaging, building and construction, sheet metal, and beverage can industries. As recycling technologies improve, the production of high-quality aluminium alloys is expected to increase, creating significant growth opportunities in this business.
Margin Concerns and Management’s View
Some investors have expressed concerns that the recycling industry is generally considered a low-margin business. However, the company does not fully agree with that perception.
According to management, the sector should be evaluated not merely on percentage margins but on earnings per tonne and Return on Capital (ROC). The company said the recycling business can generate ROC in the range of 20% to 25%, making it an attractive industry from a capital efficiency perspective.
EVs, Solar and Construction to Drive Future Growth
CMR Green Technologies believes sectors such as electric vehicles (EVs), solar energy, infrastructure, construction, and packaging will be key growth drivers in the years ahead.
The company said it has delivered a CAGR growth of around 23% in recent years and expects to maintain a similar or better pace going forward. With India’s manufacturing and green energy sectors expanding rapidly, management sees strong long-term opportunities for the business.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
