CLN Energy Soars After Lukewarm Stock Market Debut – Hits Upper Circuit with Strong Buying Support
Stock Market Debut of CLN Energy A Mixed Start with a Strong Recovery
New Delhi, January 30 : CLN Energy, a leading manufacturer of electric vehicle (EV) components and lithium-ion batteries, made a lackluster debut in the stock market today. However, strong buying interest immediately after listing propelled the stock to its upper circuit level, delivering early gains for IPO investors.
The company’s shares were issued at ₹250 per share under the Initial Public Offering (IPO). Upon listing on the BSE SME platform, the stock opened with a modest 2.4% premium at ₹256 per share. However, strong investor demand led to a rapid surge, taking the stock to ₹268.80 per share, its upper circuit limit for the day. As a result, IPO investors earned an instant return of 7.25% on Day 1.
CLN Energy IPO Subscription & Fund Utilization
The ₹72.30 crore IPO of CLN Energy was open for subscription from January 23 to January 26, 2024, and received an overall subscription of 5.42 times, reflecting strong investor interest.
IPO Subscription Details:
Qualified Institutional Buyers (QIBs): 1.07x subscribed
Non-Institutional Investors (NIIs): 8.61x subscribed
Retail Investors: 6.55x subscribed
Under this IPO, 28.92 lakh fresh equity shares of ₹10 face value each were issued. The funds raised will be utilized for:
Purchasing machinery and equipment to enhance production capacity
Meeting working capital requirements
General corporate purposes
CLN Energy’s Financial Performance & Growth Outlook
Despite market volatility, CLN Energy’s financials have shown resilience and improvement. As per the prospectus, the company has demonstrated significant revenue growth and profitability recovery.
Financial Highlights:
FY 2021-22: Net profit of ₹3.64 crore
FY 2022-23: Profit dipped to ₹73 lakh
FY 2023-24: Profit rebounded to ₹9.79 crore
Revenue CAGR: Over 4%, reaching ₹132.86 crore
In the first half of the current fiscal year (April-September 2024), CLN Energy has already recorded:
Net profit: ₹4.64 crore
Revenue: ₹75.84 crore
This strong half-year performance suggests continued profitability and revenue expansion for the full financial year.
What’s Next for CLN Energy Investors?
Short-Term Outlook: The stock’s positive movement on listing day indicates strong investor confidence. However, market fluctuations may impact short-term performance.
Long-Term Potential: With rising demand for EV components and lithium-ion batteries, CLN Energy is strategically positioned for sustained growth. The company’s investment in new machinery and working capital could drive further expansion.
Market Watch: Investors should monitor earnings reports, sector trends, and post-listing stock movements to assess long-term returns.
CLN Energy Soars After Lukewarm Stock Market Debut – Hits Upper Circuit with Strong Buying Support
