Shares of CMR Green Technologies made a strong debut on Wednesday and witnessed selling pressure only to close with 26-29 per cent listing gains, amid robust investor demand for the company’s ?631-crore initial public offering (IPO).

The stock debuted at ?275.40 on the BSE, marking a premium of 43.4 per cent over the issue price of ?192 per share. On the NSE, the shares listed at ?268, up 39.5 per cent from the IPO price.

However, it closed at ?241.20 and at ?247.90 on the NSE and BSE, respectively, falling nearly 10 per cent from its listing price.

According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, the strong debut reflects investor interest in the company’s position as a leading non-ferrous metal recycler and secondary aluminium producer.

“Following such a sharp listing gain, some profit booking and short-term volatility are likely. Investors who received allotment may consider booking partial profits while continuing to hold the remaining shares for the medium to long term, given the company’s exposure to the growing recycled metals industry. New investors should avoid chasing the stock at elevated levels and wait for a correction or consolidation before considering fresh entries.”

“Overall, caution is warranted after the strong debut. Investors may maintain a stop-loss at cost ?192 to protect gains, as a sustained move below this level could indicate weakening momentum,” Nyati added.

The strong listing came after the IPO attracted overwhelming investor interest across categories and was subscribed 127 times overall.

Among investor segments, the portion reserved for qualified institutional buyers (QIBs) was subscribed 270.46 times, while the non-institutional investor category saw subscribed 172.35 times. The retail investor portion was subscribed 27.03 times.

The IPO was fully subscribed on the first day of bidding itself, despite a largely bearish trend in the broader equity market during the week.

Ahead of the issue opening, CMR Green Technologies had raised ?188.44 crore from anchor investors on Tuesday.

The company had fixed a price band of ?182-192 per equity share for the IPO.

The public issue was entirely an offer-for-sale (OFS) of up to 3.28 crore equity shares by promoters and an investor selling shareholder.

Faridabad-based CMR Green Technologies is engaged in processing and manufacturing aluminium alloys in ingot and liquid form, zinc alloys, and furnace-ready scrap of stainless steel, copper, brass, lead and magnesium, among other materials.

The company supplies products to major automotive and engineering companies, including Honda Cars India, Bajaj Auto, Hero MotoCorp, Royal Enfield Motors, Endurance Technologies, Rockman Industries and Craftsman Automation.