All About - CleanMax Enviro Energy Solutions Limited IPO

24 Feb 2026 , 02:20 PM

CleanMax Enviro Energy Solutions Limited is entering the capital markets at a pivotal time in India’s energy transition. As corporates increasingly replace high-cost grid power with renewable alternatives—driven by 33–37% cost savings (and up to 61% in high-tariff states) alongside global net-zero commitments—the Commercial & Industrial (C&I) renewable segment has emerged as the fastest-growing engine of clean energy adoption. CleanMax positions itself as India’s largest C&I-focused renewable energy platform, delivering end-to-end decarbonisation solutions including onsite and offsite solar, wind, hybrid energy, and carbon credit monetisation.

With over 555 corporate customers—including global majors such as Apple and Google—the company operates 2,796 MW of capacity and maintains a 10,929 MW total portfolio pipeline. Its business is anchored in long-term PPAs (weighted average tenure of 22.85 years), premium tariffs (~INR 3.66/kWh), and strong customer retention (77.28% repeat order share). Operational reliability remains high, with plant availability of 98%+.

However, CleanMax’s capital-intensive growth model has resulted in elevated leverage (debt-to-EBITDA of 9.43x as of September 2025). While cash profitability is strong (Cash PAT INR 3,250 million in FY25), reported PAT remains modest due to high depreciation and finance costs.

The IPO provides investors exposure to India’s structural corporate decarbonisation theme, but valuation appears premium relative to listed renewable peers. The investment case hinges on execution of its 1.35 GW under-construction pipeline and meaningful deleveraging post issue.

About the Company

CleanMax is a pure-play C&I renewable platform focused on:

• Renewable Energy Power Sales (77% revenue contribution)
  Sale of electricity under long-term PPAs/EAPAs across solar, wind, and hybrid assets.

• Renewable Energy Services (22% revenue contribution)
  Includes Capex EPC services and Carbon Services (I-RECs, voluntary carbon credits).

Key highlights:

• 2,796 MW operational capacity

• 3,172 MW contracted capacity

• 1,346 MW to be commissioned over next 12 months

• 555+ corporate clients

• 94.72% customer base rated A- and above

• 92%+ gross margins in power sales

The company operates largely in Gujarat and Karnataka (70%+ capacity), benefiting from favourable open-access regulations.

Valuation of the Company

At the upper price band of INR 1,053:

• P/E: 377.42x (FY25 diluted EPS INR 2.79)

• NAV per share: INR 250.93

• Implied P/B: ~4.2x

• EV/EBITDA: ~15x

Compared to peers, the P/E appears significantly higher, reflecting:

• Premium C&I positioning

• High EBITDA margins

• Long-duration contracted cash flows

However, reported earnings remain subdued due to leverage and depreciation.

Details of the IPO

• Issue Type: Fresh Issue + Offer for Sale

• Total Issue Size: Up to INR 31,000 million

  • Fresh Issue: Up to INR 12,000 million

  • Offer for Sale: Up to INR 19,000 million

• Price Band: INR 1,000 – INR 1,053 per share

• IPO Open: February 23, 2026

• IPO Close: February 25, 2026

Book Running Lead Managers:

• Axis Capital Limited

• J.P. Morgan India Private Limited

• BNP Paribas

• HSBC Securities and Capital Markets (India) Pvt Ltd

• IIFL Capital Services Limited

• Nomura Financial Advisory and Securities (India) Pvt Ltd

• BOB Capital Markets Limited

• SBI Capital Markets Limited

Industry Outlook

India’s renewable energy transition is entering a structurally accelerated phase. The country targets 500 GW of non-fossil capacity by 2030, requiring substantial annual additions. The C&I segment—accounting for over 50% of India’s electricity demand—is projected to grow at a 22–24% CAGR through FY2030.

C&I renewable penetration is expected to rise from 7.4% in FY23 to 20–23% by FY30, necessitating 15–18 GW of annual additions—nearly double the pace of utility-scale projects. Growth drivers include:

• Rising grid tariffs

• Open access reforms

• Waivers on cross-subsidy surcharges

• Corporate ESG and net-zero mandates

• Rapid expansion of hyperscale data centres (5.4 GW expected by 2030)

• Voluntary carbon markets projected at $20–25 billion

Unlike utility-scale renewable players dependent on SECI auctions, C&I platforms benefit from:

• Bilateral contracting

• Premium tariffs

• Lower counterparty risk

• Greater pricing flexibility

However, the sector faces risks:

• Regulatory uncertainty around open access

• ISTS/CTU connectivity delays

• Module price volatility

• High capital intensity

Companies with strong execution, diversified geography, and disciplined capital structures are likely to outperform.

How the Company is Performing with its Peers

CleanMax has delivered:

• Revenue CAGR (FY23–FY25): 27%

• Adjusted EBITDA CAGR: 54%

• Cash PAT growth trajectory positive

However:

• Reported PAT remains thin (<1.3% net margin)

• Debt levels elevated relative to peers

Peers like Adani Green and NTPC Green display stronger accounting profitability and lower P/E multiples.

Company vs Peers (Top 5)

1. Adani Green Energy Limited

Beats: Higher C&I focus, premium tariffs
Lacks: Lower scale, weaker PAT, higher P/E

2. NTPC Green Energy Ltd

Beats: Higher EBITDA margin in C&I segment
Lacks: Lower scale, weaker balance sheet

3. ReNew Energy Global PLC

Beats: Stronger C&I niche positioning
Lacks: Lower profitability consistency

4. ACME Solar Holdings Ltd

Beats: Higher growth rate
Lacks: Higher leverage

Company	P/E	Approx. P/B
CleanMax	377x	4.2x
Adani Green	119x	~17x
NTPC Green	133x	~4x
ReNew	45x	~1.6x
ACME Solar	49x	~3x

Takeaways from RHP

• Strong repeat customer rate (77%+)

• 22.85-year average PPA tenure

• 94%+ investment-grade clients

• 82%+ EBITDA margins in power sales

• Negative working capital in services segment

• Geographic concentration risk (Gujarat, Karnataka)

• Lease dependence (67% land leased)

• PFIC classification risk for U.S. investors

Objects of the IPO

• Fund ~1.35 GW under-construction capacity

• Reduce net debt (INR 101.2 billion as of Sept 2025)

• Strengthen working capital

Pending Projects

• Commissioning 1,346 MW by Sept 2026

• Expansion of Carbon Services platform

• Execution of CTU/ISTS-connected projects

Listing Gains or Long-Term Gains?

Listing Gains:
Given premium valuation (377x P/E), immediate listing gains may be limited unless supported by strong subscription momentum.

Long-Term Gains:
More aligned with long-term investors who believe in:

• Corporate decarbonisation theme

• Margin sustainability

• Deleveraging roadmap

• Stable 20+ year contracted cash flows

Dividend strategy currently limited due to growth capex focus; better suited for capital appreciation over income generation.

Overall View

CleanMax offers a high-quality, pure-play C&I renewable opportunity in India’s structural energy transition. However, valuation leaves limited room for execution missteps. Suitable for long-term, risk-tolerant investors rather than short-term listing gain seekers.

Disclaimer – This material is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Investments in equities and IPOs are subject to market risks, including loss of capital. Please consult your financial advisor and review the RHP carefully before making any investment decision.