Sudal Industries Ltd. Share Price

CMR Green Technologies 

• CMR Green Technologies is coming out with a 100% book building; initial public offering (IPO) of 3,28,58,323 shares of face value Rs 2 each in a price band Rs 182-192 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on June 3, 2026 and will close on June 5, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 91 times of its face value on the lower side and 96 times on the higher side.
• Book running lead managers to the issue are Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors.
• Compliance officer for the issue is Srishti Saxena.

Profile of the company

The company is the leading non-ferrous metal recycler and it has the highest market share in the Indian secondary aluminium market. It has a capacity advantage over domestic players, with an installed capacity of around 4 times of the nearest competitor in the domestic recycled aluminium space. It ranks among the largest players in the global aluminium recycling industry in terms of installed capacity. It manufactures recycled aluminium alloys (in ingot and liquid form), zinc alloy ingots, dross and segregated furnace ready scrap of stainless steel, copper, brass, zinc, lead and magnesium, amongst others.

It recycles used beverage cans scrap for fulfilling new metal requirements of primary producers. Due to the large economic, environmental and social advantages of recycling and the disadvantages of mining, primary producers across the world are shifting to develop new sources of recycled metal. The company also produces aluminium billets that cater to both automotive and non-automotive sectors. These billets, made from recycled aluminium, are raw materials used in extrusion processes to create profiles for various applications. Its billets are manufactured to meet industry standards, ensuring stable mechanical properties, formability, and corrosion resistance.

It is a customer centric company, constantly striving to create value for its customers through products offered and committed deliveries. Its customers primarily include original equipment manufacturers (OEMs) and Tier 1 companies in the automotive manufacturing sector. Tier 1 companies are companies that directly supply to OEMs. Some of its OEM customers include Maruti Suzuki India, Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Samvardhana Motherson Auto Component and India Yamaha Motor, while its customers, who are Tier 1 companies include Toyota Industries Engine India, Rockman Industries, Sunbeam Lightweighting Solutions, Endurance Technologies, Craftsman Automation, Gabriel India and Honda Trading Corporation, among others. Its customers for other metal are various manufacturers including Jindal Stainless and Aurubis GmBH that further use these metals as raw material for their foundries.

Proceed is being used for:

• Carrying out the offer for sale of up to 32,858,323 equity shares.
• Achieve the benefits of listing the equity shares on the stock exchanges.

Industry overview

India is recognized as the second-largest steel producer globally and the third-largest consumer of aluminium, propelled by swift industrialization, infrastructure enhancement, and growth in the automotive sector. These developments result in significant quantities of scrap, particularly in aluminium, zinc, and stainless steel three metals that are highly recyclable and essential for sustainable industrial advancement. Although global recycling rates are relatively higher, India manages to recycle only 40% of its recyclable metal waste. This shortfall represents a considerable opportunity for expansion within the domestic recycling industry. Heightened environmental awareness, increasing material demand, and a transition towards sustainable practices are generating momentum. The market is experiencing rising interest from startups, investors, and policymakers who are in search of scalable, eco-friendly solutions that lessen reliance on raw material imports and reduce environmental harm through effective metal recovery.

The recycling process in India generally commences after metals such as aluminium, zinc, and stainless steel have been utilized in sectors like construction, transportation, and consumer products. Once these materials are used, they enter the scrap stream, where inefficient collection systems frequently hinder the recycling process. Currently, India recycles merely 40% of its recyclable metal, which is considerably lower than global benchmarks. Importantly, India is positioned as the world’s lowest-cost producer of recycled aluminium, giving it a major competitive advantage in global and domestic markets. This cost leadership offers Indian recyclers and manufacturers the opportunity to scale operations, drive exports, and offer environmentally sustainable alternatives at commercially viable prices. In response, the government has introduced an ambitious policy framework that mandates a minimum recycled content in non-ferrous metals starting from FY2028 initially set at 5%, with plans to escalate to 10–25% by FY2031. Specifically, the recycled content targets are set at 10% for aluminium, 20% for copper, and 25% for zinc.

India’s metal recycling and recovery industry is undergoing a structural transformation, driven by rising sustainability imperatives, resource efficiency goals, depleting natural resources and evolving policy frameworks. As the third-largest generator of e-waste globally and a significant producer of ferrous and non-ferrous scrap, India presents a high-potential landscape for organized recycling activities. Key policy drivers include the Extended Producer Responsibility (EPR) frameworks for both e-waste and batteries, the Vehicle Scrappage Policy targeting the systematic retirement of end-of-life vehicles, and the National Non-Ferrous Metal Scrap Recycling Framework (2020), which emphasizes scientific processing and traceability of non-ferrous scrap. The Steel Scrap Recycling Policy further aims to reduce import dependency and enhance domestic scrap quality, while the National Resource Efficiency Policy (NREP) sets circular economy benchmarks across sectors.

Pros and strengths

Key supplier of liquid aluminium alloy: The company commenced liquid aluminium supplies through its manufacturing facilities situated adjacent to the premises of its customers since 2008, and through road transport since November 2013 and have been able to increase its market share steadily over the years on account of its successful track record of quality, consistency and timely delivery of products to its customers. It also has a geographically diversified business model with revenue from north, west, east and south India. The supply of liquid aluminium is limited to only a select group of players, owing to the high technical expertise, infrastructure, and operational precision required in this space. Unlike conventional ingot supply, delivering liquid aluminium demands stringent temperature control, specialized logistics, and just-in-time delivery capabilities to ensure quality and consistency for end-use industries such as automotive and manufacturing. As a result, only a handful of established and technologically advanced recyclers and smelters are able to operate in this niche segment.

Strong and diversified supplier base for sourcing raw materials: One of the critical factors to grow and develop in its business is the ability to source metal scrap raw materials. Due to low domestic availability the company has been procuring metal scrap from around 198 global suppliers from 73 countries including, from the United States, United Kingdom, New Zealand, Australia, Europe, Africa, South Africa, Thailand and the UAE, among others for Fiscal 2025. The number of global suppliers to the company in the nine months period ended December 31, 2025 and the Fiscals 2025, 2024 and 2023 were 184, 198, 208 and 191, respectively. Some of its key suppliers include Sims Global Commodities PTE Ltd, EMR Usa Holdings LLC, European Metal Recycling, Schnitzer Steel Industries Inc. (Radius Recycling Inc.), Stemin S.P.A., Indra Recycling GMBH, GP Harmon Recycling LLC and Gemini Corporation N.V. It also is also increasing domestic scrap procurement

Long-standing relationships with customers: Over the years, it has established long-term relationships with its customers comprising of Tier 1 companies as well as OEMs, most of whom have been with the company for decades. Its customer retention levels reflect its ability to provide high quality products, and its consistent customer service standards have enabled to increase its customer dependence on the company. While, it has a market share of around 42-45% in terms of volume sold in the cast alloy segment pertaining to automotive industry for FY2025, its entry into the extrusion has expanded its serviceable market by a further 0.34 million MT and rolled alloy segments has expanded its serviceable market by further 0.59 million, providing new growth opportunities. Its existing expertise, experience and customer relationships in recycling will give the company a strong edge.

Strategic alliances through joint ventures: To benefit from the technical expertise and marketing reach, it has joint ventures with Toyota Tsusho Corporation (since 2012), with Nikkei MC Aluminium (since 2012) and with Nippon Light Metal (since 2025). Its Subsidiaries, CMRN, where it presently holds 74.00% stake, and CMRT, where it presently holds 70.00% stake, were set up in partnership with Nikkei and Toyota Tsusho, respectively. Pursuant to these arrangements, it commenced supplying liquid aluminium through road transport to its customers, which substantially increased its market share and customer dependence. Further, Nippon Light Metal, Japan, invested 20.00% shareholding in CMR NLM Eco, engaged in the business of wrought alloy recycling. CMR NLM Eco's ability to secure a stable supply of scrap and transform it into high quality recycled aluminum billets will be synergized with Nippon Light Metal technical know-how of billet casting and expertise to build a low carbon billet supply system.

Risks and concerns

Heavy reliance on top customers: It depends on a limited number of customers for significant portions of its revenues. It derives a substantial portion of its revenue from its top 10 customers, which contributed 50.02%, 52.78%, 51.20% and 48.05% of its revenue from operations for the nine months period ended December 31, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The loss of one or more of its top customers or significant reduction in production and sales of, or demand for its production from its significant customers may adversely affect its business, financial condition, result of operations and cash flows.

High dependence on liquid aluminium alloys and aluminium alloy: It relies heavily on revenue generated from the sale of certain products including liquid aluminium alloys and aluminium alloy ingots. It derives a substantial portion of its revenue from the sale of key products such as liquid aluminium alloys and aluminium alloy ingots which contribute 81.85%, 78.42%, 76.95% and 73.13% of its revenue from operations excluding export incentives, government subsidy/ other incentive for the nine months period ended December 31, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively and any loss of sales due to reduction in demand for these products could adversely affect its business, financial condition, results of operations and cash flows. In addition, it may not be able to diversify into new product lines which may adversely affect its business, revenue from operations, cash flows and financial condition.

Dependent on imports for portion of raw material requirements: It depends on imports to meet a portion of its raw material requirements. In the nine months period ended December 31, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, it imported raw materials and traded goods amounting to Rs 44,005.84 million, Rs 44,497.04 million, Rs 42,622.66 million and Rs 41,204.41 million, which accounted for 74.82%, 73.15%, 80.31%and 80.63% respectively, of its total purchases of raw materials and traded goods, based on the Restated Consolidated Financial Information. Any restrictions, either from the central government or state government of India, or from countries which it imports from, on such imports may adversely affect its business, prospects, cash flows, financial condition and results of operations.

Odisha unit highly dependent on Hindalco for revenue: Its manufacturing facility located in Odisha (Odisha Unit) is currently into the manufacturing of aluminium alloys liquid/ ingots for Hindalco Industries (Hindalco) and all its revenues from the Odisha Unit are derived from Hindalco. Consequently, the operations, capacity utilisation and profitability of this Odisha Unit are highly dependent on the continuation of its commercial relationship with Hindalco and their continued demand for its products. At present, it does not have any alternative customers for this Odisha Unit. However, pursuant to the agreement with Hindalco, if in any case, it stops the purchase of aluminium liquid/ ingots from the company, it will compensate for the entire expenses excluding interest and depreciation. Further, any reduction, termination or non-renewal of business from this customer could have a material adverse effect on its business, financial condition and results of operations.

Outlook

CMR Green Technologies and its subsidiaries (The Group) are engaged in the business of manufacturing and selling of aluminium based die cast alloys and zinc alloys in India. The Group is also engaged in the business of segregation and sale of metal scrap as a part of manufacturing process (with a specific focus on stainless steel, brass, copper and zinc). On the concern side, its operations involve melting of aluminium scrap in the furnaces as well as transportation of high temperature liquid metal to its customers. These activities can be extremely dangerous and any accident, including any spill-over of high temperature liquid metal could cause serious injury to people or property and in certain circumstances, even death, during transit and this may adversely affect its production schedules, costs, sales and ability to meet customer demand. Further, it heavily depends on its customers in the automotive industry and are significantly dependent on the performance of the automotive sector in India and overseas.

The issue has been offering 3,28,58,323 shares in a price band of Rs 182-192 per equity share. The aggregate size of the offer is around Rs 598.02 crore to Rs 630.88 crore based on lower and upper price band respectively. Minimum application is to be made for 78 shares and in multiples thereon, thereafter. On performance front, its total income increased by 12.20%, from Rs 59,684.44 million in Fiscal 2024 to Rs 66,966.63 million in Fiscal 2025. The company has reported net profit of Rs 1,550.38 million in Fiscal 2025 as compared to net loss of Rs 8,385.57 million in Fiscal 2024.

As part of its long-term growth strategy, it is exploring opportunities to expand into other metal recycling segments such as lithium-ion batteries, copper and lead, which are increasingly relevant given the rising adoption of electric vehicles and the growing demand for energy storage solutions and critical minerals. This focus aligns with supportive government frameworks such as the Battery Waste Management Rules 2022 and Extended Producer Responsibility guidelines, which promote the organised recycling of battery waste. In parallel, it continues to expand its industry base by diversifying its product and service portfolio to serve multiple high-growth sectors beyond its core automotive market. In addition to building & construction, it anticipates opportunities to supply aluminium and other recycled metals to packaging, aerospace, electronics that are actively seeking lightweight and sustainable material solutions. This diversified industry approach enables it to tap into a larger addressable market, reduce concentration risks, and position ourselves as an integrated recycling solutions provider supporting India’s transition to a circular and low-carbon economy.