CLN Energy, founded in 2019, is at the forefront of innovation in reducing carbon emissions through its expertise in lithium-ion batteries for mobile and stationary applications. The company stands out by offering end-to-end solutions, including the conception, refinement, crafting, and manufacturing of sustainable energy products.

IPO Details

CLN Energy Limited’s IPO offers an opportunity to invest in the promising clean energy sector. Key details of the IPO are as follows:

• IPO Type: Book Built Issue (Fresh Issue)
• Total Issue Size: ₹72.30 Crores (28.92 Lakh Shares)
• Price Band: ₹235 to ₹250 per equity share
• Lot Size: 600 shares (₹1,50,000 minimum investment for retail investors)
• IPO Dates: January 23, 2025, to January 27, 2025
• Listing Exchange: BSE SME
• Tentative Listing Date: January 30, 2025

Financial Performance

CLN Energy has shown impressive growth in its financial performance, driven by its leadership in the sustainable energy sector:

• Revenue Growth: ₹7,584.13 Lakh (H1 FY24) vs. ₹13,285.93 Lakh (FY23)
• EBITDA: ₹1,061.41 Lakh (H1 FY24) vs. ₹1,866.86 Lakh (FY23)
• Profit After Tax (PAT): ₹463.65 Lakh (H1 FY24) vs. ₹978.85 Lakh (FY23)

Key Metrics

CLN Energy’s valuation metrics and profitability ratios underscore the company’s solid financial foundation:

• Pre-Issue EPS (FY24): ₹12.78
• Post-Issue EPS (FY24): ₹9.28
• Pre-Issue P/E Ratio: 19.56x
• Post-Issue P/E Ratio: 26.95x
• ROCE (FY24): 91.55%
• ROE (FY24): 115.44%
• RoNW (FY24): 73.19%

These metrics position CLN Energy as a competitively priced IPO in comparison to the industry P/E ratio of 36x.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for CLN Energy IPO is ₹37, suggesting potential listing gains of 13.60%. While the GMP reflects market sentiment, it is subject to volatility and should not be the sole factor in decision-making.

Day-Wise GMP Trend:

• January 20, 2025: GMP ₹37 (13.60%), Expected Listing Price ₹287

Anchor Investors and Market Maker

CLN Energy raised ₹20.52 Crores from anchor investors at ₹250 per share, allocating 8,20,800 equity shares. Aryaman Financial Services Limited is the lead manager, while Bigshare Services Private Limited serves as the registrar.

Company Overview

CLN Energy is led by Rajiv Seth, an industry veteran with over two decades of experience. His vision has guided the company toward leadership in the sustainable energy sector, complemented by the company’s focus on innovation and technology.

Recommendation

With its strong financials, promising GMP, and leadership in the clean energy sector, CLN Energy’s IPO is an attractive option for investors. However, the relatively higher valuation indicates that it may be suited for risk-tolerant investors aiming for short-term listing gains.

Final Thoughts

The clean energy industry is rapidly expanding, and CLN Energy is well-positioned to capitalize on this growth. Investors are advised to evaluate their financial goals and risk tolerance before subscribing to the IPO. Stay updated with live subscription details and listing performance for a comprehensive investment strateg.

The Upcoming IPOs in this week and coming weeks are Malpani Pipes And Fittings and Dr. Agarwal's Health Care.

The Current active IPO are H.M. Electro Mech, GB Logistics and CLN Energy.

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