CLN Energy IPO sees 2.68 times subscription on Day 2 with support from all investors' categories

CLN Energy IPO

The initial public offering of lithium-ion battery manufacturer CLN Energy was subscribed 2.68 times on January 24, the second day of bidding, backed by decent support from across categories of investors.

In fact, all categories' book was fully subscribed with retail investors being at the top buying 3.74 times their reserved portion. Non-institutional investors subscribed 2.44 times their allotted quota. The part set aside for qualified institutional buyers was fully booked at 1.07 times.

Overall, investors picked 55.45 lakh equity shares against the offer size of 20.71 lakh shares via 6,251 applications, the subscription data on the BSE showed.

The CLN Energy IPO will close on January 27, while the trading in company's shares will commence on the BSE SME effective January 30.

Click Here To Read All IPO News

The company that manufactures customised lithium-ion batteries, motors and also deals in powertrain components of electric vehicles intends to raise Rs 72.30 crore via initial share sale at the upper price band. The book built issue comprises of entirely fresh issue of 28.92 lakh shares.

The price band for the issue is Rs 235-250 per share. CLN demands a valuation of around Rs 264 crore.

On January 22, a day before the issue opening for public subscription, CLN Energy has already mobilised Rs 20.52 crore by allotting 8.2 lakh shares to three institutional investors - Citadel Capital Fund, Elite Capital Fund, and Beacon Stone Capital - via anchor book at a price of Rs 250 per share.

The company, which offers B2B solutions for mobility applications (such as electric vehicles) and stationary applications (such as solar, ESS, and telecommunications), plans to spend IPO proceeds for purchase of machinery and equipment, working capital requirements, and general corporate purpose.

Aryaman Financial Services is acting as the book running lead manager for the issue.