Muted Debut! CLN Energy shares list at ₹256 on BSE SME, just 2.4% up from IPO price

CLN Energy IPO listing: CLN Energy shares made a muted debut on Thursday, January 30, listing at ₹256 on BSE SME, a premium of just 2.4 percent over the issue price of ₹250.

CLN Energy's initial public offering (IPO), valued at ₹72.30 crore, was open for subscription from January 23 to January 27. The SME IPO price band was fixed at ₹235-250 per equity share.

Following the three days of bidding, CLN Energy IPO closed with strong demand, garnering 5,42 times bids. The IPO received bids for 1.03 crore shares against 19.15 lakh shares on offer. The retail investor segment was booked 6.55 times, while the non-institutional investors (NII) category was subscribed 8.6 times. Meanwhile, the Qualified Institutional Buyers quota was bid 1.07 times in the 3 days of bidding.

About the IPO

CLN Energy IPO was entirely a fresh issue of 28.92 crore shares with no offer for sale component. Retail investors could apply with a minimum lot size of 600 shares, requiring a minimum investment of ₹1.5 lakh.

Nearly 50 percent of the issue was been reserved for qualified institutional bidders, while non-institutional investors had 15 percent of the allocation. Retail investors got the remaining 35 percent of the net issue.

CLN Energy raised ₹20.52 crore from anchor investors ahead of the IPO on January 22, 2024.

The net proceeds from the issue will be allocated towards multiple strategic initiatives. A significant portion will be used for the purchase of machinery and equipment, ensuring enhanced operational efficiency and capacity expansion. Additionally, a part of the funds will be directed towards meeting the company's working capital requirements, supporting day-to-day operations and maintaining financial flexibility. The remaining proceeds will be utilized for general corporate purposes, which may include business expansion, debt repayment, and other corporate needs.

Aryaman Financial Services Limited is the book running lead manager of the CLN Energy IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for CLN Energy IPO is Aryaman Capital Markets Limited.

About the Company

Founded in 2019, CLN Energy Limited specializes in manufacturing customized lithium-ion batteries and motors while also supplying powertrain components for electric vehicles. Its product portfolio includes controllers, throttles, DC-DC converters, displays, and differentials. The company provides B2B solutions for both electric mobility and stationary applications such as solar energy, energy storage systems (ESS), and telecommunications. Under the “CLN Energy” brand, it offers lithium-ion battery packs, motors, and powertrain components. CLN Energy operates two manufacturing facilities, one located in Noida and the other in Pune, Maharashtra.