CLN Energy IPO Review

CLN Energy was founded in 2019 with the aim of reducing Carbon emissions in both mobile and stationary situations. Within CLN Energy, they not only conceive, refine and craft products and solutions but also manufacture them. Their expertise lies in the field of lithium-ion batteries, covering both mobile and stationary applications.

The Company is led by Promoters, namely, RAJIV SETH, who had acquired indirect stake of the company through CLN Energy Pte Ltd dated November 19, 2019, thus making him a promoter of the company. He holds bachelor’s degree in Electronics & Communication Engineering at Kurukshetra University. He has over 2 decades of experience in overall managing and promoting companies. He is the promoter of 4 foreign companies including the holding company.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 7,584.13 Lakh, ₹ 13,285.93 Lakh, ₹ 12,888.39 Lakh and ₹ 12,170.00 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,061.41 Lakh, ₹ 1,866.86 Lakh, ₹ 667.70 Lakh, and ₹ 635.62 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 463.65 Lakh, ₹ 978.85 Lakh, ₹ 72.87 Lakh, and ₹ 364.13 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 12.78 and post-issue EPS of ₹ 9.28 for FY24. The pre-issue P/E ratio is 19.56x, while the post-issue P/E ratio is 26.95x against the Industry P/E ratio is 36x. The company's ROCE for FY24 is 91.55%, ROE for FY24 is 115.44% and RoNW 73.19%. The Annualised EPS based on the latest financial data is ₹ 12.1 and PE ratio is 20.66x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of CLN Energy showing potential listing gains of 13.60 %. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the CLN Energy Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.