CLN Energy, established in 2019, is focused on reducing carbon emissions through innovations in lithium-ion batteries designed for both mobile and stationary applications. Their expertise is not limited to just conceptualizing and refining these solutions but also extends to the manufacturing process itself, making them a fully integrated energy solutions provider.

As part of their expansion plans, CLN Energy is offering an IPO through a book-built issue amounting to ₹ 72.30 Crores. The IPO consists entirely of a fresh issue of 28.92 Lakh shares. This issue opens on January 23, 2025, and closes on January 27, 2025. Investors can expect the allotment to be finalized around January 28, 2025, and the shares are slated to list on the BSE SME on January 30, 2025.

Pricing and Subscription Details

The price band for the CLN Energy IPO has been set between ₹ 235 and ₹ 250 per share. At the upper price of ₹ 250 per share, the company’s market capitalization is projected at ₹ 263.83 Crores. Investors can subscribe to a minimum lot size of 600 shares, with retail investors needing a minimum investment of ₹ 1,50,000. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹ 3,00,000 (for 1,200 shares).

The IPO has already seen a Grey Market Premium (GMP) of ₹ 37, which suggests a potential listing gain of 13.60% on the listing price. It's important to note that the GMP is not indicative of actual trading and is subject to market dynamics. For more details on IPO trends and updates, visit our Best IPO to Apply Now - IPO List 2024.

CLN Energy IPO Financial Performance and Key Metrics

Looking at the financials, CLN Energy has shown a steady growth trajectory. For the fiscal year ended September 30, 2024, the company’s revenues from operations stood at ₹ 7,584.13 Lakh, an increase from ₹ 12,170.00 Lakh in FY22. The EBITDA for FY24 was ₹ 1,061.41 Lakh, reflecting solid operational efficiency.

Despite the challenges in the energy sector, the company has managed to maintain profitability, with a Profit After Tax (PAT) of ₹ 463.65 Lakh for FY24, up from ₹ 364.13 Lakh in FY22. These figures indicate that the company is well-positioned for long-term growth.

The pre-issue Earnings Per Share (EPS) stands at ₹ 12.78, and post-issue EPS is expected to be ₹ 9.28. With a P/E ratio of 19.56x (pre-issue) and 26.95x (post-issue), CLN Energy is priced reasonably compared to the industry average of 36x. The company’s Return on Equity (ROE) for FY24 is 115.44%, with a Return on Capital Employed (ROCE) of 91.55%. These numbers demonstrate strong financial health and attractive growth potential.

Anchor Investors and Subscription Status

CLN Energy has raised ₹ 20.52 Crores from Anchor Investors at a price of ₹ 250 per share, with 8,20,800 shares allocated. These investors are typically given priority in the IPO and provide valuable market validation. The IPO live subscription status shows that, as of January 23, 2025, the issue is subscribed 0.35 times on its first day of subscription.

The allotment date is scheduled for January 28, 2025, and investors can check their allotment status on the official registrar website.

What’s Next for CLN Energy?

As CLN Energy continues its efforts to innovate in the green energy sector, the IPO presents an opportunity for investors to participate in a company that is striving to create a cleaner, more sustainable future. The GMP, steady growth in financials, and attractive valuations make this IPO a good option for investors looking for both short-term listing gains and long-term growth potential.

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