CLN Energy shares made a modest start on the BSE SME platform, listing at ₹256 per share, reflecting a modest 2.4% premium over the IPO price of ₹250. Despite substantial subscription numbers, the stock failed to register a significant post-listing surge, indicating a cautious market response.
Let's examine CLN Energy's IPO performance, investor sentiment, and what this means for the company.
CLN Energy IPO Subscription and Market Performance
IPO Subscription Details
CLN Energy's IPO was open for subscription from January 23 to January 27, raising a total of ₹72.30 crore. The SME IPO had a price band of ₹235-250 per share and witnessed strong demand across investor categories:
- Total Subscription: 5.42 times overall.
- Retail Investors: 6.55 times subscribed.
- Non-Institutional Investors (NII): 8.6 times booked.
- Qualified Institutional Buyers (QIBs): 1.07 times bid.
Despite the strong demand, the listing gain was marginal, reflecting a tempered post-IPO market reaction.
CLN Energy IPO Listing Day Performance
On January 30, 2025, CLN Energy debuted on BSE SME at ₹256 per share, just ₹6 higher than its issue price.
Key Market Data:
- Issue Price: ₹250
- Listing Price: ₹256 (+2.4%)
The small premium suggests that while investors showed strong interest in the IPO, post-listing enthusiasm remained subdued.
Where Will the IPO Proceeds Be Used?
CLN Energy plans to utilise the IPO proceeds for business expansion and operational improvements, including:
- Machinery & Equipment Purchases: Enhancing production capacity.
- Working Capital Requirements: Supporting day-to-day operations.
- General Corporate Purposes: Including debt repayment and future growth initiatives.
These investments aim to boost efficiency and scalability,
About CLN Energy: Business and Growth Prospects
Company Overview
CLN Energy was found in 2019 and it specialises in manufacturing parts of Electric Vehicles such as Powertrain components and Lithium-Ion Batteries. The company also supplies components for solar energy systems, energy storage solutions, and telecommunications applications.
Manufacturing Facilities
- Noida, Uttar Pradesh
- Pune, Maharashtra
CLN Energy will benefit from the increasing demand for high-performance battery solutions and powertrain technologies.
Summary
CLN Energy made a subdued debut on the BSE SME platform, listing at ₹256 per share, just 2.4% above its issue price of ₹250. Despite strong IPO demand, with a 5.42x overall subscription, post-listing enthusiasm remained limited. The company raised ₹72.30 crore, intending to use the proceeds for business expansion, machinery purchases, and working capital needs. Founded in 2019, CLN Energy manufactures lithium-ion batteries and powertrain components for EVs, along with solutions for solar energy and telecommunications. With manufacturing units in Noida and Pune,
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