Updated Feb 23, 2026 11:19 IST
Clean Max Enviro Energy Solutions Ltd’s Rs 3,100 crore IPO has opened from February 23…
highlights
CleanMax’s Rs 3,100 crore IPO is open from 23-25 February. Clean Max Enviro Energy Solutions Ltd is a big company in the renewable energy sector. The company has fixed the price band at Rs 1,000 to Rs 1,053 per share.
Rs 921 crore raised before IPO
Before the opening of the IPO, the company has raised Rs 921 crore from anchor investors. Big names like Temasek, Nomura, SBI Life, HDFC Mutual Fund, ADIA and Premji Invest were included in this round. The share of domestic institutions was about 68% and that of foreign institutions was 32%. The company allotted 87.46 lakh shares to anchor investors at a price of Rs 1,053 each.
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What is the business model of the company?
According to the IPO note of SBI Securities, CleanMax is India’s largest commercial and industrial (C&I) renewable energy service provider. By October 2025, the company had an operational capacity of 2.8 GW and a contracted capacity of 3.2 GW. The company focuses on ‘net zero’ and decarbonization solutions.
Its business is divided into two parts. First, Renewable Energy Power Sales, where the company sells power to customers through long-term power purchase agreements (PPA). Second, Renewable Energy Services, which includes EPC, O&M and carbon credit services. As of September 2025, the company had 555 customers and 1,198 PPAs. The average tenure of the company’s PPA is around 22.8 years, which provides visibility and stability.
Strong customer base and premium tariffs
The special thing about CleanMax is that it does not participate in the tariff bidding of the state government, but contracts directly with corporate customers. This gives it a premium tariff. The company’s weighted average tariff stood at Rs 3.66 per unit in 1HFY26, while the tariff of utility scale companies was in the range of Rs 2.44-2.46.
Customers include tech giants like Amazon, Apple, Google, Cisco, Equinix and cement, steel, FMCG, pharma and real estate companies. The company’s repeat order rate has increased from 51.8% in FY23 to 71.7% by September 2025.
Financial performance and valuation
On the financial front, the company’s revenue increased from Rs 1,390 crore in FY24 to Rs 1,496 crore in FY25. The company made a profit of Rs 27.84 crore in FY25. EBITDA margin increased from 40.3% in FY23 to 60.2% in FY25, showing operating efficiency.
However, net debt is high and interest coverage ratio is low. Of the Rs 1,200 crore fresh issue amount to be raised from the IPO, about Rs 1,122 crore will be used to repay debt. The remaining amount is for general corporate needs. The company’s EV/EBITDA multiple at the upper price band is around 21-22x on FY25 basis, which can be considered a moderate valuation compared to some players in the sector.
What kind of response is being received in the gray market?
The GMP of the IPO in the gray market is said to be around Rs 3. That means, at the issue price of Rs 1,053, the potential listing gain is around Rs 42 or about 0.28%. However, GMP is an informal indicator and is subject to rapid change.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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