Clean Max IPO Coming End of November
The renewable energy space is heating up with competition. Reportedly, the Brookfield-backed Clean Max Enviro Energy Solutions is gearing up to launch its massive ₹52,000 mn IPO (Initial Public Offering). And, the timeline under consideration is Nov 2025, last week. Clean Max Enviro Energy Solutions is a Mumbai-based company. It is a leading provider of green energy to Commercial and Industrial (C&I) clients. The company had filed its DRHP (Draft Red Herring Prospectus) with SEBI in Aug 2025. It is now said to be in the midst of investor roadshows.
This clean energy public issue seems to be a giant one. It comprises:
- A fresh issue of shares worth up to ₹15,000 mn
- A very large OFS (Offer For Sale) of up to ₹37,000 mn by its promoter and existing investors.
Recently, the clean energy sector has experienced a surge in capital investment. A competitor in the clean energy space, Juniper Green Energy, is reportedly aiming for a public launch in the same period. As there is a significant OFS component in the upcoming Clean Max public issue, a crucial question arises for investors: is this a prime opportunity to invest in the corporate "net-zero" transition, or is it a high-priced exit for its marquee private equity backers?
What Is The ₹52,000 Mn Issue’s Real Story?
A closer look at the DRHP can reveal that it is, first and foremost, a liquidity event for its major investors. The OFS, at ₹37,000 mn, has accounted for more than 71% of the total issue size. There is a list of the leading sellers in the OFS as mentioned in the DRHP document.
- Kuldeep Pratap Jain - The promoter is set to sell shares worth up to ₹3213.70 mn.
- BGTF One Holdings (Brookfield) - This promoter is a private equity giant. It is the largest seller and is set to offload shares worth up to ₹19708.30 mn.
- Augment India I Holdings - The investor will sell shares worth up to ₹9919.40 mn.
- Other participants, KEMPINC LLP and DSDG Holdings APS in the OFS will be selling shares worth ₹2256.10 mn and ₹1902.50 mn, respectively.
Furthermore, the fresh issue component of ₹15,000 mn is not primarily earmarked for new capex. According to the filed DRHP, Clean Max plans to utilise ₹11,250 mn (i.e., 75% of the fresh issue) to repay or prepay outstanding borrowings for itself and its subsidiaries. The remaining 25% funds are allocated for general corporate purposes.
Therefore, the funding is not directly being utilised for the construction of new solar and wind farms. Given this structure, what is the underlying business that investors are actually buying into?
What Is Clean Max’s Business Model?
The C&I space in the green energy market is one of the most attractive segments in the industry. Clean Max has thus carved out a dominant position. This can prove to be a better focus than competing in low-margin utility-scale projects.
- Market Position - A leader in India’s C&I renewable market. A CRISIL report cited in its DRHP has mentioned that it held a 12% market share of all annual open-access renewable capacity additions for this segment in FY24.
- Impressive Scale - As of Jul 31, 2025, the company had an operational capacity of 2.54 GW and 2.53 GW contracted capacity. It also has a massive pipeline of 5.07 GW of projects under advanced stages of development.
- Sticky, High-Quality Customers - The company is serving 531 C&I customers across 1,127 power purchase agreements (PPAs). Its clientele is a blue-chip list of tech and infrastructure giants.
- Proven Customer Retention: In FY25, 77.28% of its contracted capacity came from repeat clients.
The company is operating by building:
- On-site solar installations (on a client's roof, for example)
- Large off-site wind and solar farms where multiple C&I clients can buy power
This has given it a strong foothold in states like Gujarat and Karnataka.
Financials and Risks
After focusing on scaling up, Clean Max’s financials have recently turned a corner. The IPO is seeking a valuation based on its massive pipeline and its dominant market position, rather than its current modest earnings.
The primary risk is the sheer level of competition. The C&I segment is lucrative and is attracting numerous players, including Juniper Green Energy.
Source
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
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