Founded in 2019, CLN Energy is on a mission to reduce carbon emissions through innovative solutions in both mobile and stationary applications. Specializing in lithium-ion battery technology, the company provides a wide array of products that cater to the increasing demand for clean energy solutions. Their expertise lies in designing, crafting, and manufacturing these solutions to meet the needs of various sectors.

IPO Details
CLN Energy is launching an IPO worth ₹ 72.30 Crores, comprising 28.92 lakh fresh shares. The price band is set between ₹ 235 and ₹ 250 per share, with a lot size of 600 shares. Retail investors must make a minimum investment of ₹ 1,50,000, while High Net-Worth Individuals (HNIs) are required to invest a minimum of ₹ 3,00,000 for two lots. The subscription period is from January 23, 2025, to January 27, 2025, with the allotment date scheduled for January 28, 2025. The tentative listing date on BSE SME is set for January 30, 2025.

Grey Market Premium (GMP)
The Grey Market Premium (GMP) for CLN Energy IPO is currently ₹ 37, suggesting potential listing gains of 13.60%. However, investors should keep in mind that GMP is based on demand and supply in the unregulated market and does not guarantee actual performance post-listing. This information is provided for educational purposes.

IPO Subscription Status
As of 5:00 PM on January 24, 2025, the CLN Energy IPO has been subscribed 2.68 times on the second day, indicating solid investor interest. The subscription figures suggest a promising demand for the shares.

Financial Performance and Metrics
CLN Energy has shown consistent growth in its financial performance over the years, with revenues from operations reaching ₹ 7,584.13 lakh for the period ending September 30, 2024. The company has also posted significant gains in EBITDA and Profit after Tax (PAT), reflecting a robust business model.

• Pre-issue EPS for FY24 stands at ₹ 12.78, with a post-issue EPS of ₹ 9.28.
• The P/E ratio pre-issue is 19.56x, while the post-issue P/E ratio stands at 26.95x, compared to the industry average of 36x.
• ROCE for FY24 is a high 91.55%, and the ROE for FY24 is a stellar 115.44%, reflecting the company's efficient use of capital and strong profitability.

Utilization of IPO Proceeds
The funds raised through the IPO will be used for the following objectives:

1. ₹ 971 Lakhs will be allocated to the purchase of machinery and equipment.
2. ₹ 4,022 Lakhs will go toward funding working capital requirements.
3. The remaining funds will be used for general corporate purposes, ensuring the company has the resources to expand its operations and increase production capacity.

Why Invest in the CLN Energy IPO?
Given the company’s strong financial performance, growth trajectory in the lithium-ion battery sector, and sustainable solutions for carbon emissions, the CLN Energy IPO presents a promising investment opportunity for those looking to capitalize on the renewable energy sector. The GMP and financial metrics suggest that the IPO is fairly priced, making it an attractive option for investors, especially those willing to take on a bit more risk for potential listing gains.

CLN Energy IPO Allotment Date and Status
The allotment date for CLN Energy IPO is January 28, 2025, and the status can be checked on the Registrar’s website using either the application number, PAN, or DP Client ID.

Conclusion

The CLN Energy IPO offers a compelling opportunity for investors interested in the clean energy and battery technology space. With solid financial performance and a fair valuation, it holds potential for strong listing gains. Investors should consider applying if they are looking for exposure to a high-growth sector with long-term prospects.

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