CLN Energy Lists at 2.4% Premium, Shows Stable Performance on BSE SME

resr 5paisa Research Team

Last Updated: 30th January 2025 - 11:46 am

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CLN Energy Limited, a specialized manufacturer of electric vehicle components operating since 2019, marked its entry into the public markets on Thursday, January 30, 2025. The company, which has established itself manufacturing customized lithium-ion batteries and motors from its two manufacturing facilities in Noida and Pune, commenced trading on BSE SME with a modest but stable start.

CLN Energy Listing Details

The company's market debut reflected measured investor confidence in its business model and growth prospects:

  • Listing Time & Price: When trading commenced at market open, CLN Energy shares debuted at ₹256 on BSE SME, delivering a modest premium of 2.4% to IPO investors against the issue price of ₹250. This measured opening suggests investors are taking a balanced view of the company's growth potential in the emerging EV component sector.
  • Issue Price Context: The stable debut came after the company had strategically priced its IPO between ₹235 and ₹250 per share, ultimately fixing the final issue price at ₹250. This pricing approach appears to have struck a reasonable balance between company valuation and market expectations.
  • Price Evolution: By 10:54 AM IST, the stock showed resilience, trading at ₹257.10, representing a gain of 2.84% over the issue price after touching an intraday high of ₹268.80, demonstrating steady interest throughout the early trading session.

 

First-Day Trading Performance 

The trading activity showed balanced participation with stable sentiment:

  • Volume and Value: Within the first few hours, 3.94 lakh shares changed hands, generating a turnover of ₹10.25 crore. Notably, 100% of traded shares were marked for delivery, indicating pure investment interest rather than speculative trading.
  • Demand Dynamics: The stock's trading pattern showed healthy two-way interest with buy orders for 3.64 lakh shares against sell orders for 1.06 lakh shares, reflecting balanced market participation at current levels.

 

Market Sentiment and Analysis

  • Market Reaction: Modest opening followed by stable trading
  • Subscription Rate: The IPO was moderately oversubscribed by 5.42 times:

          - NII portion: 8.6 times
          - Retail portion: 6.55 times
          - QIB portion: 1.07 times

  • Pre-listing Interest: Anchor investors demonstrated confidence by investing ₹20.52 crore before the public issue

 

Growth Drivers and Challenges

Expected drivers of future performance:

  • State-of-the-art manufacturing facilities
  • Experienced professional team
  • Strong customer relationships
  • In-house R&D capabilities
  • Customized product solutions
  • Consistent financial track record
  • Growing EV sector opportunity

 

Potential challenges:

  • Profit sustainability concerns
  • Competitive market dynamics
  • Technology evolution risks
  • Working capital needs
  • Recent fire incident impact
  • Customer concentration risk

 

Utilisation of IPO Proceeds 

The ₹72.30 crore raised through fresh issue will be used for:

  • Purchase of machinery and equipment
  • Meeting working capital requirements
  • General corporate purposes

 

Rexpro Enterprises Financial Performance 

The company has shown improving results:

  • Revenue relatively stable at ₹132.86 crore in FY2024 compared to ₹128.88 crore in FY2023
  • H1 FY2025 (ended September 2024) showed revenue of ₹75.84 crore with PAT of ₹4.64 crore
  • Net worth of ₹18.01 crore as of September 2024
  • Minimal borrowings of ₹6.78 crore

 

As CLN Energy begins its journey as a listed entity, market participants will closely monitor its ability to capitalize on the growing EV sector opportunity while maintaining operational efficiency. The measured listing and stable trading suggest balanced investor perspective on the company's prospects in the EV components sector, particularly given its manufacturing capabilities and strong client relationships, though profit sustainability and competitive dynamics remain key areas to watch. The company's ability to leverage its technological capabilities and expand its market presence will be crucial for long-term success in the rapidly evolving EV industry.
 

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