Clean Max Enviro IPO: Profit swings, cost overruns; 5 key risks to watch

Clean Max Enviro IPO will be offered at a price band of ₹1,000 to ₹1,053 per share, with a lot size of 14 shares

Clean Max Enviro IPO: Clean Max Enviro Energy, a renewable energy provider, is set to launch its initial public offering (IPO) on Monday, February 23, 2026. The ₹3,100 crore public issue 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 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. 

 

Clean Max Enviro IPO will be offered at a price band of ₹1,000 to ₹1,053 per share. The minimum application size has been set at 14 shares per lot. The issue will remain open for subscription till Wednesday, February 25. The company’s shares are tentatively scheduled to make their D-Street debut on Monday, March 2.

 

 

MUFG Intime India is the registrar for the issue. 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 are the book-running lead managers for the issue. 

 

According to the Red Herring Prospectus (RHP), the company plans to utilise ₹1,122.67 crore from the net fresh issue proceeds for repayment or prepayment of certain borrowings availed by itself and its subsidiaries. The remaining funds will be used for general corporate purposes.   

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Clean Max Enviro IPO GMP

On Thursday, February 19, the unlisted shares of Clean Max were trading almost flat at ₹1,062 in the grey market, commanding a marginal premium of ₹9 or 0.85 per cent from the upper end price of ₹1,053. 

Here are the key risks associated with investing in Clean Max Enviro IPO:

Recent losses and profitability volatility: According to the RHP, Clean Max reported restated losses of ₹37.64 crore in fiscal 2024 (FY24) and ₹59.47 crore in FY23. However, the company returned to profitability in FY25 as well as during the six-month periods ended September 30, 2025 (H1FY26) and September 30, 2024 (H1FY25). Certain subsidiaries continued to incur losses during the six months ended H1FY26, and in FY25, FY24, and FY23. Clean Max said that any inability to generate sufficient cash profits and meet scheduled debt repayment obligations could adversely affect its ability to sustain profitability going forward.

 

High customer concentration risk: Clean Max derived 34.95 per cent, 38.55 per cent, 36.16 per cent, 45.39 per cent and 44.32 per cent of its revenue from operations from its top 10 India-based customers during H1FY26 and H1FY25, and in FY25, FY24 and FY23, respectively. The company expects this concentration to increase as projects under construction for some of these customers are commissioned. Any inability to retain, renew, or secure new engagements with these key customers could materially impact Clean Max’s operations and financial position.

 

Risk of PPA/EAPA termination: The company sells electricity from its renewable energy plants through long-term PPAs and EAPAs, which have a weighted average tenure of 22.85 years and a lock-in period of 16.86 years as of September 30, 2025. The company noted that counterparties may terminate these agreements if certain conditions are not met - such as delays in project completion, failure to supply the contracted energy, or other specified events. If it fails to secure replacement agreements on similar terms promptly, its business could be adversely affected.

 

Execution and cost overrun risk: The company undertakes fixed-price EPC contracts under its STU-Capex business, providing turnkey services including land acquisition, evacuation infrastructure, construction, and O&M for the project’s lifetime. The company raised caution that inaccurate cost estimates, failure to meet quality or performance guarantees, or project delays could increase construction costs and working capital needs, potentially impacting its financial condition.

 

Land acquisition and development risk: Clean Max secures land for its solar and wind projects through a combination of leases and acquisitions, selecting sites based on factors such as grid connectivity, proximity to substations, resource potential, land type, soil quality, cost, and ownership structure. According to the company, if it fails to acquire or convert land for non-agricultural use or to secure sites with adequate transmission infrastructure and rights of way, its operations could be adversely affected.

 

Geographic concentration risk: According to the RHP, Clean Max’s operational projects in Karnataka and Gujarat accounted for 77.16 per cent, 78.76 per cent, 79.71 per cent, and 66.91 per cent of its revenue from renewable energy power sales during H1FY26, and in FY25, FY24, and FY23, respectively. The company said any adverse developments or regulatory changes in these states could have a significant impact on its business.