CMR Green Technologies’ proposed IPO structure has sparked debate among market watchers due to its unusual financial outcome: zero capital will be injected into the company and there are no plans to cover the huge losses of previous years.
According to DRHP, all the proceeds from the offer will go to the selling shareholders after expenses and taxes. The stated objectives are limited to availing the benefits of listing and facilitating sale of approximately 4.29 crore equity shares by existing shareholders. No funds will be provided to reduce debt, mitigate losses or strengthen the balance sheet, raising questions about alignment with public investor interest and increasing IPO investor alert.
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