ET Intelligence Group: CMR Green Technologies, a non-ferrous metal recycling company, plans to raise ₹630 crore through an offer for sale. The promoter shareholding will decline to 84% after the IPO from 87%. Strong demand for recycled aluminium and other non-ferrous metals provides long-term growth visibility. However, the business remains exposed to concentration risks, with recycled aluminium contributing over 80% of revenue, leaving it vulnerable to commodity price volatility. Moreover, nearly half of its sales are derived from the top 10 customers. Given these factors, the issue appears to be suitable for long-term investors with a higher risk tolerance.BusinessIncorporated in 2005, the company manufactures aluminium alloy ingots and liquid aluminium, along with zinc alloys and other recycled metals such as copper and stainless steel. The share of aluminium products in revenue increased to 81.9% in nine months to December 2025 from 78% in FY25. The company operates 13 recycling facilities across the country, with an installed capacity of about 6.2 lakh tonnes per annum as of March 31, 2026. It is a key player in the cast alloy segment of the automotive industry, where it held an estimated 42-45% market share by volume in FY25, according to the ICRA report.India's recycled aluminium market is projected to reach $9.2 billion with a volume of 3.7 million tonnes, growing 13.2% in value and 11.2% in volume annually over FY2026-FY2030, according to the report.Agenciesin the works: There are buyers for recycled metals, but customer concentration makes issue better-suited for long-term investorsFinancialsRevenue grew at a compounded annual growth rate (CAGR) of 6.6% to ₹6,666 crore while net profit rose by 22% to ₹155 crore between FY23 and FY25. Operating margin before depreciation and amortisation (EBITDA margin) expanded to 4.6% from 3.5% during the period. In FY24, the company reported a net loss of ₹838 crore due to a one-time goodwill write-off. The debt-to-equity ratio increased to 0.6 in FY25 from 0.2 in FY23, within the peer range of 0.06-0.93.Operating cash flow (OCF) was negative at ₹387.7 crore as of December 2025 and ₹92 crore in FY25 due to a sharp increase in raw material costs, particularly aluminium, and ramp-up of new manufacturing facilities. OCF was ₹74 crore in FY24 and ₹611 crore in FY23. Trade receivables days increased to 38 days in nine-months to December 2025 from 34 days in FY23, reflecting extended collection cycles.ValuationThe company demands a price-earnings (P/E) multiple of 19 on post-IPO basis compared with a P/E of 29 for Pondy Oxides and Chemicals, 31.6 for Gravita India and 36.5 for Jain Resource Recycling.