Clean Max Enviro Energy Solutions IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is India’s largest commercial and industrial (“C&I”) renewable energy provider with 2.80 GW of operational, owned and managed capacity, and 3.17 GW of contracted, yet to be executed capacity, as of October 31, 2025, according to the CRISIL Report. It expertise spans across providing energy contracting, engineering, procurement and construction (“EPC”) services, and operation and maintenance (“O&M”) services of renewable energy plants including solar, wind and hybrid plants, within its customer’s premises (“Onsite”) and within CleanMax-developed renewable energy (solar, wind and hybrid) farms (“Offsite”). It also provide end-to-end decarbonization solutions to customers such as turnkey development, O&M solutions for renewable energy power plants and carbon credits solutions.

Its business model is distinct from utility-scale renewable energy developers, according to the CRISIL Report, as it do not participate in competitive tenders with state-owned distribution companies or central government utilities, which award projects solely based on the lowest tariff bids. Instead, it pursue customer-specific contracting by tailoring projects for corporate consumers’ needs and selling energy generated from its solar, wind, and hybrid renewable energy farms. This business model has enabled it to foster relationships with 555 customers as of September 30, 2025, with 71.72% of its Contracted Capacity for the six months period ended September 30, 2025 being attributable to demand from repeat customers.

The company offer a range of renewable energy offerings to its customers across geographies through its two business segments: (i) Renewable Energy Power Sales Segment; and (ii) Renewable Energy Services Segment.

Under Renewable Energy Power Sales Segment it sells electricity generated at its renewable energy plants to customers through long-term Power Purchase Agreements (“PPAs”) and Energy Attribute Purchase Agreements (“EAPAs”).

Under Renewable Energy service segment , its services include offering turnkey development services, including land, evacuation infrastructure, EPC services, power evacuation and O&M services for the lifetime of the project, enabling its customers to benefit from its execution capabilities while retaining asset ownership. Also Through its Carbon Services offering, it offers customers a suite of Net Zero offerings to meet their carbon neutrality mandates, including (i) environmental attributes, such as International Renewable Energy Certificates (“I-RECs”)

IPO Details:

Objectives of Issue:

• Repayment and/or pre-payment, in part or full, of all or certain outstanding borrowings of the Company and/or certain of the Subsidiaries
• General Corporate Purpose

Key Strengths:

• Customer Concentration- The company via its distinct model in terms of its peers ensure that it eliminates dependence on government institutions for power offtake and sells directly to private players. In Fiscal Year 2025 top 10 customers contributed not more than 40% of the total revenue. This customer diversification ensured , company is not dependent on any single customer for revenue generation
• Revenue Visibility and Stability – The Company’s revenue visibility is underpinned by a long-tenor, de-risked PPA portfolio with a weighted average tenure of 22.85 years and a weighted average lock-in period of 16.86 years as of September 30, 2025. Onsite Solar projects offer strong protection with a 20.20-year average tenure and 19.61-year lock-in, supported by termination penalties and customer buyback provisions that secure recovery of remaining contractual revenues. Offsite STU Group Captive projects (24.53-year tenure) include termination penalties and the flexibility to re-contract power to new customers, mitigating counterparty risk. STU Third Party Open Access projects benefit from cross-subsidy surcharge waivers, enabling tariff premiums and re-contracting flexibility despite relatively shorter lock-ins. CTU-connected and EAPA contracts further enhance stability through long tenors, exchange-linked settlements with customer compensation mechanisms (covering over 83% of contracted CTU capacity), 100% offtake obligations, and parent guarantees where required. Additionally, low receivable days (41.66 days for top customers) and absence of disputes reinforce predictable cash flows.

Risks:

• Concentrated Projects – Its operational projects located in the States of Karnataka and Gujarat contributed an aggregate of 77.16%, 78.76%, 79.71% and 66.91% of its revenue from Renewable Energy Power Sales in the six months ended September 30, 2025, Fiscals 2025, 2024 and 2023, respectively. Any adverse developments including changes in the regulatory framework affecting such states may have a heightened impact on its business, cash flows, financial condition and results of operations.
• Non Flexibility in Increase of Tariffs - Key drivers of its profitability are its ability to estimate the cost of project execution and equipment procurements, as well as its ability to manage costs during the terms of its PPAs and operate its projects at optimal levels. For its Under Development projects, as its PPAs are typically executed between 6-18 months prior to the date of project execution and equipment procurement, failure to estimate or manage its costs would adversely impact as its profitability. For Operational Capacity, the developer tariffs are fixed for the term of majority of its PPAs, while all other regulatory tariffs are passed through to customers. If its production costs increase, it will not be able to charge higher tariffs to its customers, which could have an adverse impact on its profitability
• Outstanding Litigations - There are outstanding litigation proceedings involving its Company, Subsidiaries, Promoters, Directors and its Key Managerial Personnel. The monetary claims in such outstanding proceedings involving the Company disclosed in accordance with SEBI ICDR Regulations and the Materiality Policy, aggregate to approximately 11.36%, 12.86%, 11.61%, 16.26%, and 24.23% of the Net Worth of the Company for the six months period ended September 30, 2025, and September 30, 2024, and the Financial Years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively, and any adverse outcome in such proceedings may have an adverse impact on its reputation, business, cash flows, financial condition and results of operations

Financial Snapshot:

Peers Comparision

Conclusion

The company operates in the renewable energy sector, which is a highly promising segment, particularly in light of the Government of India’s target to achieve 500 GW of electricity generation capacity by 2030. The company differentiates itself by directly supplying power to the Commercial & Industrial (C&I) segment, which provides relatively stable and long-term demand visibility.

From a financial perspective, the company has demonstrated revenue growth superior to the industry average. However, its EBITDA margins and PAT margins remain lower than those of its industry peers, indicating comparatively weaker operational profitability. While the company’s debt-to-equity ratio is lower than the industry average, its Interest Coverage Ratio (ICR) is also below peers, reflecting relatively constrained earnings capacity to service interest obligations. Additionally, the company’s Return on Equity (ROE) trails the industry benchmark.

In terms of valuation, the industry is currently trading at an average P/E multiple of around 86x, whereas the company is valued at a pre-IPO multiple of approximately 365x, which appears significantly aggressive relative to its peers. Although the company intends to utilize IPO proceeds to reduce borrowings, thereby lowering interest costs and potentially improving profitability, the current margin profile and stretched valuation make the investment unattractive. Given the availability of better-performing companies within the sector at more reasonable valuations, it would be prudent to avoid this offering.

IPO Allotment

Find out the allotment status for the Clean Max Enviro Energy Solutions IPO by checking its registrar's page.