CLN Energy Limited is coming up with an IPO with a fresh issue of 28,92,000 shares worth INR 72.30 crores. The company aims to invest effectively in machinery, working capital, and general corporate purposes. 

CLN Energy IPO – Important Dates 

CLN Energy Limited IPO – Company Profile 

CLN Energy Limited, established in 2019, manufactures lithium-ion batteries, motors, and powertrain components, offering B2B solutions for electric vehicles and stationary applications, emphasising sustainability, reduced carbon emissions, and customised energy storage solutions. 

Their in-house R&D designs integrated powertrain and energy systems using lithium-ion batteries, enabling cost savings, reduced carbon emissions, intelligent energy management, remote operations, and insights for mobility and energy storage applications like UPS and telecom. 

Their efficient, customised products, driven by R&D and customer feedback, leverage ISO-certified facilities, creating competitive entry barriers and enabling them to address diverse mobility and stationary application needs across India’s vast market. 

CLN Energy Ltd IPO Fundamental Analysis 

CLN Energy Limited’s financial analysis reveals a mixed performance. Revenue increased steadily, equity showed growth, and profitability and EPS improved, but RoNW declined; increased assets and liquidity contrasted with slower inventory turnover and short-term obligation challenges. 

• Revenue Trend: The revenue increased from ₹12,168.96 lakhs in March 2022 to ₹12,881.94 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 13,270.87 lakhs.
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹364.13 lakhs in March 2022 to ₹978.85 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹4.82 in March 2022 to ₹12.78 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has reduced from 127.49% to 12.78%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

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CLN Energy IPO Financial Analysis 

CLN Energy Limited IPO Peer Comparison 

CLN Energy Limited, Eveready Industries, Panasonic Energy, High Energy Batteries, and Indo National operate in energy storage, showcasing diverse share values, earnings, returns, and valuations, reflecting varying market performance and financial metrics across companies. 

CLN Energy Ltd IPO Objective 

The main objective of CLN Energy Limited is to invest in advanced machinery and equipment while addressing working capital requirements, ensuring operational efficiency and supporting growth in mobility and energy storage solutions. 

1. Purchase of machinery and equipment: The company intends to utilise INR 9.71 crores to enhance its Noida manufacturing facility by procuring advanced machinery, improving efficiency and quality, and effectively meeting growing customer demand for its products. 

2. Funding Working capital requirements: The company plans to utilise INR 41.22 crores for working capital requirements in FY 2024-25, aiming to enhance liquidity, ensure smooth operations, improve supplier relations, and optimise cost-effective procurement for business expansion. 

3. General Corporate Purpose: The company will deploy funds for general corporate purposes, including strategic initiatives, partnerships, branding, marketing, client referral fees, facility renovations, and other business exigencies to support growth and operational efficiency. 

CLN Energy IPO Risks And Challenges 

CLN Energy Limited’s risk includes potential disruptions from non-renewal of permits, failure to adapt to market demand, and delays or cost overruns in capital equipment purchases, which could negatively impact operations, financial stability, and growth. 

• Non-renewal or non-compliance with statutory and regulatory permits, licenses, or approvals could result in operational disruptions, increased costs, penalties, or business interruptions, negatively impacting the company’s performance and financial stability. 

• Any failure to react to market demand, introduce new products, or manage external factors like economic or political developments may result in increased costs and business strategy changes and negatively affect the company’s financial condition and future growth. 

• The company plans to invest INR 9.71 crores in capital equipment to enhance production capacity. Still, risks include potential delays, cost overruns, and market fluctuations, which could impact costs, revenue, and profitability due to uncertain vendor quotes and inflation. 

CLN Energy Ltd IPO – Industry & Market Potential 

The global lithium-ion battery market, valued at USD 54.4 billion in 2023, is projected to grow at a CAGR of 20.3% through 2030, driven by rising electric vehicle sales, particularly in the U.S., supported by federal policies. 

India’s manufacturing exports reached a record US$ 447.46 billion in FY23, with 6.03% growth. The sector’s strong performance, including a projected US$ 500 billion contribution to the global economy by 2030, reflects its growing prominence. 

With a projected CAGR of 50%, India’s lithium-ion battery industry is poised for significant growth, supported by local lithium reserves, government initiatives, and increasing demand for energy storage, aligning with ambitious 2030 energy goals. 

CLN Energy Limited IPO – Type of Offer 

CLN Energy Limited is coming up with an IPO with a fresh issue of 28,92,000 shares worth INR 72.30 crores. The company aims to invest effectively in machinery, working capital, and general corporate purposes. 

CLN Energy IPO Offer Size 

The offer size of CLN Energy Limited is INR 72.30 crores, consisting of a fresh issue of 28,92,000 shares. The company aims to invest effectively in machinery, working capital, and general corporate purposes. 

CLN Energy Limited IPO Allotment Structure 

CLN Energy Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 1,56,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 1,56,000 shares, are reserved for market makers. 

How to apply for CLN Energy IPO?

To apply for the CLN Energy Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the CLN Energy Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the CLN Energy Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check CLN Energy IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the CLN Energy Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the CLN Energy Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the CLN Energy Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the CLN Energy Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

CLN Energy Ltd IPO Offer Registrar

The registrar for the CLN Energy Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

BIGSHARE SERVICES PRIVATE LIMITED

Office No S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre,

Mahakali Caves Road, Andheri (East) Mumbai – 400093

Tel. No.: +91 22 6263 8200

Email: [email protected]

Website: www.bigshareonline.com 

CLN Energy IPO – FAQs