CLN Energy shares opened at ₹256 on BSE SME, a modest 2.4% premium over its issue price of ₹250 per share. This subdued listing was below market expectations, given that the Grey Market Premium (GMP) had suggested a potential listing price of ₹287. The company's IPO, which aimed to raise ₹72.30 crore, consisted of a fresh issue of 28.92 lakh shares and was subscribed 5.09 times by investors.

Company Overview and Business Model

Founded in 2019, CLN Energy focuses on reducing carbon emissions through its lithium-ion battery solutions for both mobile and stationary applications. The company engages in conceptualization, refinement, manufacturing, and distribution of energy solutions, catering to the growing need for sustainable power alternatives.

CLN Energy IPO Details

The IPO, structured as a Book Built Issue, had a price band of ₹235-₹250 per share. At the upper end of the price range, the company’s market capitalization stood at ₹263.83 crore. The IPO had a lot size of 600 shares, requiring a minimum investment of ₹1,50,000 for retail investors and ₹3,00,000 for High-Net-Worth Individuals (HNIs).

Subscription Status and Anchor Investment

The IPO opened for subscription on January 23, 2025, and closed on January 27, 2025. The final subscription stood at 5.09 times the offer size, with strong demand from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs). Prior to the IPO, ₹20.52 crore was raised from anchor investors at ₹250 per share, securing 8,20,800 equity shares through the process.

Financial Performance and Key Ratios

CLN Energy has demonstrated consistent financial growth:

• Revenue: ₹7,584.13 lakh (Sep 2024), ₹13,285.93 lakh (FY24), ₹12,888.39 lakh (FY23), ₹12,170.00 lakh (FY22)

• EBITDA: ₹1,061.41 lakh (Sep 2024), ₹1,866.86 lakh (FY24)

• Net Profit: ₹463.65 lakh (Sep 2024), ₹978.85 lakh (FY24)

• Pre-issue EPS: ₹12.78 | Post-issue EPS: ₹9.28

• Pre-issue P/E ratio: 19.56x | Post-issue P/E ratio: 26.95x

• ROCE: 91.55% | ROE: 115.44% | RoNW: 73.19%

Compared to the industry P/E ratio of 36x, the IPO pricing appears reasonable, though the listing suggests a muted market response.

CLN Energy IPO GMP and Listing Performance

Prior to the listing, the Grey Market Premium (GMP) stood at ₹37, indicating an expected listing price of ₹287. However, the actual listing at ₹256 was below market expectations, reflecting investor caution in the SME IPO segment.

How to Check CLN Energy IPO Allotment Status

Investors who applied for the IPO can check the allotment status on the registrar’s website by following these steps:

1. Visit the IPO allotment status page.

2. Select CLN Energy Limited IPO from the dropdown menu.

3. Enter your application number, PAN, or DP Client ID.

4. Click submit to view your allotment status.

Use of IPO Proceeds

The net proceeds from the IPO will be utilized as follows:

• ₹971 lakh for purchase of machinery and equipment.

• ₹4,022 lakh for funding working capital requirements.

• Remaining for general corporate purposes.

Final Verdict on CLN Energy IPO Listing

Despite a strong financial track record and industry relevance, CLN Energy’s IPO listing was subdued, reflecting broader market concerns. The moderate subscription levels and lack of significant listing gains indicate limited short-term investor enthusiasm. However, the company’s focus on lithium-ion battery solutions and sustainable energy remains promising for long-term growth.