IPO closes on 25 Feb'26
Clean Max Enviro Energy Solutions Ltd
Minimum Investment
₹ 14,742 / 14 shares
Our Verdict:
Neutral
- The company operates in a structurally strong renewable energy segment catering to commercial and industrial clients, offering long-term demand visibility and scalability.
- Business fundamentals are sound, with a clear focus on clean energy transition, which supports wealth creation over a longer holding period.
- Valuations appear on the higher side, which may cap near-term upside and limit listing-day performance.
- Given current market conditions, this IPO is better suited for investors willing to stay invested through cycles rather than those seeking short-term gains.
About the company
Founded in
29 Sep'10
Managing director
Kuldeep Jain
- Clean Max is India’s largest Commercial and Industrial (C&I) renewable energy provider, with 2.80 GW of operational, owned and managed capacity, and an additional 3.17 GW of contracted capacity under execution, as of October 31, 2025.
- The company specializes in delivering solar, wind and hybrid renewable energy solutions to over 500 corporate clients, including leading data centres, AI-driven enterprises and large industrial companies.
STRENGTHS
- Strong Market Positioning: Clean Max stands as India's largest C&I renewable energy service provider, commanding a market share of ~8% in FY25, with higher market shares in Gujarat and Karnataka.
- Impressive Turnaround: The company has experienced remarkable growth from FY23 to FY25, achieving a CAGR of 27% in operating revenue and 58% in EBITDA. Moreover, it successfully transitioned to profitability in FY25, reporting a profit of Rs 19.42 crore, reversing a loss of Rs 37.64 crore in FY24.
- Customer-Centric Model: Unlike utility-scale developers that focus on lowest tariff bids, Clean Max takes a customer-specific contracting approach. This strategy has cultivated strong relationships with 555 customers as of September 30, 2025, with 71.72% of the contracted capacity for H1FY26 attributed to repeat customers.
- Tariff Premium: This distinctive business model allows for a higher tariff premium. The weighted average tariff for capacity commissioned in H1FY26 was Rs 3.66, while for FY25, it stood at Rs 3.76, compared to the industry average of Rs 2.44-2.46 for listed utility-scale renewable energy players.
- High Repeat Customer Rates: Repeat orders from existing customers have grown from 51.8% in FY23 to 71.7% as of September 2025. Through its contracting practices, Clean Max has built a robust portfolio with an average PPA (Power Purchase Agreement) tenure of 22.8 years, and an average lock-in period of 16.9 years as of September 2025.
- Superior Customer Credit Quality: As of September 30, 2025, 94.72% of the customers with operational and contracted capacity are rated A-/A/AA/AAA or are subsidiaries of multinational corporations or government educational institutions. The company’s strong client relationships are reflected in a low receivables period of just 24 days in its Renewable Energy Power Sales Segment—significantly lower than the industry average of 71.66 days.
RISK FACTORS
- Weak Track Record: Clean Max reported losses in FY24 and FY23, with some subsidiaries also facing losses in H1FY26 and the past three fiscals. Continued underperformance may negatively impact consolidated cash flows, profitability and overall financial stability.
- Customer Concentration: The company heavily relies on a few key customers and as projects with certain clients are completed, their share of operational capacity is expected to increase. In FY25, the top 10 customers accounted for over 36% of total revenue. Losing any of these customers could significantly affect operations and cash flows.
- Promoter Share Encumbrance: Some promoters have pledged equity shares in the company to secure loans from 360 One Prime Ltd. Additionally, the entire shareholding of one promoter group has been pledged. Any exercise of these pledges could lead to a change in control, potentially impacting the company’s performance.
- Geographic Concentration: The company’s operations in Karnataka and Gujarat generated 77.16% of its Renewable Energy Power Sales revenue in H1FY26 and 78.76% in FY25. Adverse developments, including regulatory changes in these states, could significantly affect the company’s business, cash flows and operations.
- Legal Risks: The company, along with its subsidiaries, promoters, directors and key managerial personnel, is involved in ongoing litigation totaling approximately Rs 324 crore. Any unfavorable outcomes could damage the company’s reputation and negatively affect its financial performance.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 3100 cr
Fresh Issue
₹ 1200 cr
OFS
₹ 1900 cr
Price range
₹ 1,000 - 1,053
Lot size
14 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
· Repayment of certain borrowings availed by the company and its subsidiaries; and
· General corporate purposes.
The net proceeds from the fresh issue will be utilized for the following purposes:
· Repayment of certain borrowings availed by the company and its subsidiaries; and
· General corporate purposes.
Dates
Bidding open
23 Feb'26
Bidding close
25 Feb'26
Allotment date
26 Feb'26
Refund date
27 Feb'26
Listing
2 Mar'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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