CMR Green Technologies' ₹631 crore initial public offering opens for subscription this week with grey market premiums reaching 75% above the issue price, a level that would place its implied listing valuation near ₹1,105 crore before a single share trades on exchange.
The company, a renewable energy infrastructure provider, is pricing shares at the upper end of its ₹210-220 band. Grey market participants are now bidding ₹385 per share in unlisted trades, reflecting demand that has built despite the Nifty sliding 340 basis points over the past ten trading sessions. The issue closes June 5, with allocation finalized by June 9. CMR follows Merritronix, a ₹70 crore offering that opened June 1, and precedes Hexagon Nutrition's pending subscription window. All three are testing a market that has seen 12 IPOs withdraw or delay since mid-April.
The premium matters because it isolates the spread between institutional anchor allocation and retail frenzy. CMR's anchor book will price at the discovered band; retail and HNI portions chase the listing pop. A 75% grey market premium implies retail buyers expect a ₹165 per-share gain on day one, assuming the premium holds through listing. That expectation has survived a week in which the India VIX climbed to 18.2, its highest June reading since 2022. The last renewable IPO with comparable grey market momentum was Waaree Energies in October 2024, which listed at 61% above issue price and traded down 22% within three sessions as profit-taking overwhelmed the bid.
Operators should watch three follow-on events. First, anchor allocation results post-market close June 2 will show whether domestic mutual funds or sovereign wealth vehicles are participating at size. Second, the retail and HNI subscription multiples by June 4 will clarify whether grey market enthusiasm translates to on-exchange demand or remains a thin-float artifact. Third, listing day volume in the first 90 minutes will reveal whether selling pressure from grey market participants who need to hedge or exit overwhelms listing buyers. Hexagon Nutrition's pricing and timing will shift depending on how CMR performs through this gauntlet.
The renewable infrastructure sector has seen ₹4,200 crore in IPO issuance since January, with an average first-day return of 34% and an average 30-day return of 11%. CMR's grey market premium is pricing in the high end of that range before the subscription window opens.