Clean Max Enviro Energy IPO Explained: Business Model, Risks, Valuation, Financials

Clean Max Enviro Energy Solutions Ltd helps big companies cut electricity cost and pollution by supplying them solar, wind, and hybrid (solar + wind mix) power on long-term contracts. Its ₹3,100 crore IPO opens on 23 Feb 2026 and closes on 25 Feb 2026, with a price band of ₹1,000-₹1,053 per share and a tentative listing on 2 Mar 2026.

In this blog, we’ll decode how Clean Max earns, where IPO money goes, what looks strong, what can go wrong, and how its valuation and numbers stack up.

IPO Overview

• IPO Date: 23 to 25 Feb, 2026
• Total Issue Size: ₹3,100 crore
• Price Band: ₹1,000 to ₹1,053 per share
• Minimum Investment: ₹14,742
• Lot Size: 14 Shares
• Tentative Allotment Date: Feb 26, 2026
• Listing Date: Mar 2, 2026 (Tentative)

How Clean Max Enviro Makes Money

• It builds renewable plants and sells power to corporates: It sets up solar and wind plants (big farms or rooftop setups) and sells electricity under long PPAs (Power Purchase Agreements = long contracts that lock price and supply for years). This is its main engine.
• It also builds plants for clients who want to own them. This is the services side (EPC/O&M = build it, then maintain it), where it earns fees for setting up projects and keeping them running smoothly. This side can be cash-friendly when customers pay on time.
• It runs an asset-heavy model, so scale matters. Bigger operating capacity means more electricity to sell; the company reported 2.80 GW operating capacity and a 3.17 GW contracted pipeline.
• It targets repeat corporate buyers, not government tenders. The story is that corporate contracts can be stickier than selling to state utilities, and the company highlights repeat business and long contracts as a stability lever.​

Objectives of the IPO

• Out of the total IPO funds, ₹1,900 crore is an offer for sale, which will go to the existing shareholders selling their shares in the IPO, while the remaining ₹1,200 crore is a fresh issue, which will be used for the following purposes.
• Loan repayment: Clean Max plans to use ₹1,122.67 crore from the fresh issue proceeds to repay borrowings of the company and its subsidiaries. It’s like lightening a heavy interest backpack so future profits don’t get eaten by interest.
• General corporate purposes: A part of the fresh issue is meant for general corporate purposes, which typically covers day-to-day needs and also opportunities like partnerships or acquisitions (buying another business).

Strengths:

• Leadership scale and visible pipeline: Clean Max runs 2.80 GW operating capacity as of Oct 2025, and another 3.17 GW is already contracted to be built. It also had ~8% share of all new open-access capacity added in FY25 (open access = companies buy power directly from producers).
• Better pricing power than tender-heavy peers: For projects commissioned in FY25, its weighted average tariff was ₹3.76 per unit. Industry average tariffs were around ₹2.44-₹2.46 per unit, so on every 100 units sold, it earns roughly ₹130+ more revenue than the industry.
• ​Sticky corporate revenue: In H1 FY26, 71.72% of newly contracted capacity came from repeat customers. It serves 555 customers via 1,198 long-term agreements, with an average contract life of ~23 years - like locking in a customer relationship for decades, which can make cash flows more predictable.

Risks:

• High debt and heavy interest bills can cap profits: Total borrowings were ₹10,121.46 crore as of Sep 2025. Finance cost was 42.92% of total income, meaning for every ₹100 the company earned, about ₹43 went to interest and borrowing costs, leaving less room for profit and growth if rates rise.
• Too much depends on two locations: Karnataka and Gujarat contributed 77.16% of power sales revenue in H1 FY26. In simple words, out of every ₹100 earned from power sales, about ₹77 came from just these two states, so a rule change or disruption there can hit results quickly.
• A few big clients matter a lot: The top 10 customers contributed 34.95% of total revenue in H1 FY26. That means roughly ₹35 out of every ₹100 comes from just 10 clients, so if one or two reduce consumption or don’t renew, the revenue impact can be noticeable.

For detailed information, visit Clean Max Enviro’s official IPO page at INDmoney.

Peer Comparison

Source: RHP, internal calculation

• Operating Revenue: Clean Max generated ₹1,495.7 crore, placing it slightly ahead of ACME Solar (₹1,405.1 crore) but showing it operates at a much smaller scale than massive utility-focused giants like Adani Green (₹11,212.0 crore) and ReNew Energy (₹9,751.3 crore).
• Cash Profit: Clean Max reported the lowest bottom line in the group at ₹27.8 crore, heavily trailing market leaders like Adani Green (₹1,444.0 crore) and NTPC Green (₹475.5 crore) due to its high depreciation and debt financing costs.

Financial Performance

Clean Max’s total income grew from ₹960.98 crore in FY23 to ₹1,610.34 crore in FY25, showing strong scaling. Profit after tax improved from a loss of ₹59.47 crore (FY23) and ₹37.64 crore (FY24) to a profit of ₹19.43 crore (FY25), which supports the “turnaround” story people are discussing. EBITDA increased from ₹405.92 crore (FY23) to ₹1,015.07 crore (FY25), suggesting the operating engine strengthened as the portfolio expanded.

​But the balance sheet is the other half of the story: borrowings rose to ₹10,121.46 crore by 30 Sep 2025. That’s why the IPO uses a large chunk of fresh money for debt repayment, reducing future interest burden, which can protect profits if growth slows for a few quarters.

IPO Valuation

P/E looks scary here, and it can mislead: The P/E is at 324.3x, but this business owns big solar and wind assets and uses meaningful debt, so reported profit gets pushed down by depreciation (non-cash wear-and-tear cost) and interest, even if the plants are generating steady operating cash.

EV/EBITDA fits better for this kind of company: EV/EBITDA is at 17.43x; EV counts both equity and debt, and EBITDA shows operating profit before interest and depreciation, so it’s closer to “what you’re paying for operating cash earnings” in an asset-heavy renewables platform.

Debt is still the key thing to watch: Borrowings were ₹10,121.46 crore (Sep 2025), and the company plans to use ₹1,122.67 crore from the fresh issue mainly to repay loans, helpful, but it doesn’t make this a low-debt story overnight.

Disclaimer: The P/E ratio and EV/ EBITDA here is calculated using the company’s post-IPO equity and its annualized H1 FY26 numbers.

Who’s Making Money from the IPO?

The IPO includes an OFS (Offer for Sale = existing shareholders selling their shares), and this part does not bring money into the company; this money will go to the selling shareholders.

The biggest seller is BGTF One Holdings (DIFC) Limited (Brookfield Group) at ₹903.90 crore. Founder-MD Kuldeep Jain is selling ₹216.80 crore. Investors like Augment India I Holdings, LLC (₹541.92 crore), DSDG HOLDING APS (₹164.38 crore), and KEMPINC LLP (₹73.00 crore) are also selling.

As per the calculations, Brookfield’s exit implies 2.4x returns, Augment and DSDG 3.7x, and KEMPINC 3.4x. This usually signals planned profit-booking after years of holding. The founder’s 1,504x looks huge mainly because founders often start at a very low cost and hold for a long time, so the “multiple” can look exaggerated.

Analyst View

Clean Max feels different because it sells green power straight to corporates, so the usual sector worry of “state utility delayed payments” is lower. The business is scaling, FY25 profit turned positive at ₹19.43 crore, and EBITDA was ₹1,015.07 crore, so the operating engine looks strong.

Where investors need to stay alert is the balance sheet. Total borrowing was ₹10,121.46 crore (Sep 2025), and the company plans to use ₹1,122.67 crore from the fresh issue mainly to repay loans, which should ease interest pressure.

On valuation, the very high P/E can look inflated in asset-heavy renewables because depreciation (non-cash cost) and interest can pull down reported profit. EV/EBITDA is usually a better yardstick here because it includes debt in the valuation and compares it to operating profit (EBITDA), which is closer to “cash profit from running plants.” So, this fits better as a medium-to-long-term infrastructure-style bet than a quick listing trade.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Clean Max Enviro's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.