CLN Energy Limited is preparing to launch its initial public offering (IPO) from January 23 to January 27, 2025, with an aim to raise approximately ₹72.30 crores. The IPO will consist of a fresh issue of equity shares priced between ₹235 and ₹250 each, with a face value of ₹10. As a manufacturer of customized lithium-ion batteries and powertrain components for electric vehicles, CLN Energy is positioned to benefit from the growing demand for sustainable energy solutions. The funds raised will be utilized for purchasing machinery, working capital requirements, and general corporate purposes.
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Expert Opinions
Market sentiment for the CLN Energy IPO is largely positive, driven by the increasing focus on sustainable energy solutions and the growing electric vehicle market in India. CLN Energy has established itself as a key player in manufacturing customized lithium-ion batteries and powertrain components, supported by advanced production facilities and a strong research and development team.
However, potential risks include fluctuations in raw material prices and competition from established players in the battery manufacturing sector, which could impact profitability. The IPO is priced with a price-to-earnings (P/E) ratio of approximately 19.57x based on projected earnings, indicating a competitive valuation relative to industry peers. From a long-term investment perspective, CLN Energy is well-positioned to capitalize on the expanding renewable energy and electric mobility sectors.
Investor Considerations
Investors considering the CLN Energy IPO should assess several important factors. Company performance and fundamentals show a positive trajectory, with revenues increasing from ₹128.82 crores in FY2023 to ₹132.71 crores in FY2024, alongside a significant profit rise to ₹9.79 crores, indicating effective operational management. The sector outlook is favorable, as the demand for lithium-ion batteries and electric vehicle components is expected to grow significantly due to the global shift towards sustainable energy solutions.
The IPO valuation reflects a return on net worth (RoNW) of approximately 73.19%, suggesting a compelling investment opportunity at the issue price of ₹235 to ₹250 per share. Growth prospects remain robust, with plans for expanding production capacity and enhancing product offerings to capture market share. However, potential risk factors include volatility in raw material prices and competition from established manufacturers. A long-term investment horizon is advisable, as CLN Energy aims to capitalize on favorable trends in the renewable energy sector.
| Date | GMP | Trend |
|---|---|---|
| 29 Jan 2025 10.29 | ₹00 | --- |
| 28 Jan 2025 10.52 | ₹00 | --- |
| 27 Jan 2025 10.37 | ₹00 | --- |
| 25 Jan 2025 11.36 | ₹00 | --- |
| 24 Jan 2025 12.26 | ₹00 | --- |
| 23 Jan 2025 11.27 | ₹00 | --- |
| 22 Jan 2025 11.04 | ₹00 | --- |
| 21 Jan 2025 11.01 | ₹00 | --- |
| 20 Jan 2025 11.35 | ₹00 | --- |
FAQs
The Grey Market Premium showed reasonable accuracy in predicting CLN Energy’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock delivered a small gain of 2.40%. With a minimal prediction error of 2.40%, the GMP’s indication of weak market enthusiasm was largely accurate, though it slightly underestimated the marginal positive listing gain.
CLN Energy IPO Current GMP is ₹00.
CLN Energy IPO Expected Returns is 0.00%.
CLN Energy IPO estimated listing price is ₹250.