Clean Max Enviro IPO: Long-term growth eyed, but valuation raises eyebrows

Clean Max Enviro IPO comprises a fresh issue of 11.4 million equity shares worth up to ₹1,200 crore, and an offer for sale (OFS) of 18 million shares worth ₹1,900 crore

Clean Max Enviro IPO: India’s largest commercial & industrial (C&I) renewable energy service provider, Clean Max Enviro Energy Solutions, has received a mixed response from brokerages ahead of its initial public offering (IPO), with concerns raised over its aggressive valuation. The company’s maiden share sale, valued at around ₹3,100 crore, is set to open for public subscription on Monday, February 24, 2026.

 

Ahead of the launch, Aditya Birla Money has recommended subscribing to the issue with a long-term perspective, citing the healthy growth potential in an underpenetrated industry.  The brokerage pointed out that C&I renewable energy penetration stood at 7.4 per cent in FY23, with expectations for it to rise to 20 per cent by FY30. This will require 15-18 GW of annual capacity additions, translating into a 22-24 per cent compound annual growth rate (CAGR) in installed capacity. "The phasing out of ISTS charges and emerging high energy-consuming sectors like data centres and AI, which require guaranteed RTC power supply, will bolster C&I demand, providing visibility and confidence in business scaling," said the brokerage in its report.

 

 

However, at the upper price band of ₹1,053, the issue is valued at 16x EV/Ebitda, which Aditya Birla Money considers to be expensive.

 

On the other hand, Swastika Investmart has assigned a 'Neutral' rating to the IPO, highlighting that, based on recent financials, the offering appears aggressively priced. "However, considering its superior Ebidta margins and stronger operating metrics compared to industry peers, the IPO valuation seems justified. The IPO may be avoided for short-term or listing gains; however, well-informed investors may consider it for medium- to long-term investment," said the brokerage in its report.

 

Amidst these mixed market sentiments, grey market activity also remains subdued ahead of the IPO launch. Sources tracking grey market activity revealed that the company’s unlisted shares were changing hands at around ₹1,053 per share in unofficial markets. This translates to a grey market premium (GMP) of ₹63 or 0.43 per cent over the upper end of the IPO price band of ₹1,000 to ₹1,053 per share. 

Clean Max Enviro IPO details

Clean Max Enviro IPO comprises a fresh issue of 11.4 million equity shares worth up to ₹1,200 crore, and an offer for sale (OFS) with promoters and shareholders divesting up to 18 million shares worth up to ₹1,900 crore.

 

Under the OFS, Kuldeep Jain, BGTF One Holdings (DIFC), and KEMPINC LLP are the promoter selling shareholders, while Augment India I Holdings and DSDG Holding APS are the investor selling shareholders, according to the Red Herring Prospectus (RHP).

 

The public offering will be available at a price band of ₹1,000 to ₹1,053 per share, with a lot size of 14 shares. Investors can bid for a minimum of 14 shares, and in multiples thereof.

 

A retail investor would require a minimum of ₹14,742 to bid for one lot (14 shares) of Clean Max Enviro IPO, while ₹1,91,646 is required to bid for a maximum of 13 lots (182 shares) at the upper end of the price band.

 

Clean Max Enviro IPO is set to conclude its subscription window tentatively on Wednesday, February 25. Following this, the basis of allotment is scheduled to take place on Thursday, February 26. The company’s shares are set to make their D-Street debut on Monday, March 2. 

 

MUFG InTime India is the registrar for the issue, while the book running lead managers include Axis Capital, JP Morgan India, BNP Paribas, HSBC Securities and Capital Markets (India), IIFL Capital Services, Nomura Financial Advisory and Securities (India), BOB Capital Markets, and SBI Capital Markets.

 

The company will not receive any proceeds from the offer for sale. "Our Company will not receive any proceeds from the Offer for Sale, and the proceeds received from the Offer for Sale will not form part of the Net Proceeds. Each of the Selling Shareholders will be entitled to their respective portion of the proceeds from the Offer for Sale, in proportion to the equity shares offered by them, after deducting their proportion of offer-related expenses and relevant taxes," said the company in its RHP.

 

However, Clean Max plans to utilise the proceeds from the fresh issue for the repayment and/or pre-payment, in part or full, of certain outstanding borrowings of the company and/or certain of its subsidiaries, as well as for general corporate purposes.      ============================ 

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