CLN Energy IPO subscribed 2.04 times on Day 2. Check GMP and other details
Team Finance Saathi
24/Jan/2025

What's covered under the Article:
- The IPO opens at ₹235 to ₹250 per share with a 13.60% GMP indicating potential listing gains.
- CLN Energy specializes in lithium-ion batteries and aims to reduce carbon emissions.
- IPO proceeds to fund machinery purchases, working capital, and general corporate needs.
CLN Energy, established in 2019, focuses on reducing carbon emissions through innovative lithium-ion batteries. The company’s products serve both mobile and stationary applications in energy storage and power solutions. With a commitment to environmental sustainability, CLN Energy manufactures its products in-house and delivers tailored solutions for reducing emissions across industries.
The CLN Energy IPO is a Book Built Issue amounting to ₹72.30 crores, consisting entirely of a fresh issue of 28.92 lakh shares. The price band for the IPO is set at ₹235 to ₹250 per share, with a market capitalization of ₹263.83 crores at the upper price band. The IPO subscription period will run from January 23, 2025, to January 27, 2025, with the listing date scheduled for January 30, 2025.
Business Overview
CLN Energy operates in the lithium-ion battery space, which plays a crucial role in addressing global energy storage needs. The company’s products are used in various applications aimed at reducing carbon emissions, making CLN Energy a key player in renewable energy solutions. The company’s expertise is demonstrated through its ability to conceive, refine, and manufacture energy-efficient products, including stationary power systems and mobile battery solutions.
IPO Financial Highlights
- Price Band: ₹235 to ₹250 per equity share
- Market Capitalization: ₹263.83 crores at ₹250 per share
- Lot Size: 600 shares; Minimum Investment for Retail Investors: ₹1,50,000; HNIs: ₹3,00,000 (2 lots)
- Book Running Lead Manager: ARYAMAN FINANCIAL SERVICES LIMITED
- Registrar: BIGSHARE SERVICES PRIVATE LIMITED
Financial Performance
- Revenue from Operations (₹ Lakh): FY24 - ₹7,584.13; FY23 - ₹13,285.93
- EBITDA (₹ Lakh): FY24 - ₹1,061.41; FY23 - ₹1,866.86
- Profit After Tax (PAT) (₹ Lakh): FY24 - ₹463.65; FY23 - ₹978.85
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for CLN Energy IPO is ₹37, or 13.60% at the upper end of the price band, indicating strong listing gain potential. As with any IPO, it’s important to note that GMP figures should be taken with caution, as they are based on unregulated market trends.
Subscription and Allotment Details
As of 11:10 AM on January 24, 2025, the IPO has been subscribed 2.04 times on its second day, reflecting positive investor interest. The IPO allotment date is January 28, 2025, and investors can check their allotment status online by following these steps:
- Visit the IPO allotment status page.
- Select CLN Energy Limited IPO from the dropdown.
- Enter your application number, PAN, or DP Client ID.
- Submit to check your allotment status.
IPO Objectives
The company plans to use the net proceeds for the following purposes:
- ₹971 Lakhs for purchase of machinery and equipment.
- ₹4,022 Lakhs for working capital requirements.
- General corporate purposes.
Company Leadership
The company is led by Rajiv Seth, a seasoned professional with over two decades of experience in managing and promoting businesses. Rajiv Seth became a promoter of CLN Energy in 2019, holding an indirect stake through CLN Energy Pte Ltd. His leadership and vision drive the company’s commitment to reducing carbon emissions and advancing sustainable energy solutions.
Valuation and Conclusion
With a pre-issue P/E ratio of 19.56x and a post-issue P/E ratio of 26.95x, the IPO is priced reasonably when compared to the industry P/E ratio of 36x. The GMP of 13.60% signals a strong likelihood of listing gains. Based on the company’s solid financials, growth prospects, and valuation, we recommend Risky Investors to Apply for the CLN Energy IPO to capitalize on potential listing gains.
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