CleanMax Enviro IPO: India's Quiet Renewable Giant Goes Public

Imagine signing a contract with Amazon, Apple, Google, or Cisco—not to sell them software or hardware, but to power their offices, warehouses, and data centers with clean energy for the next two decades. That's the business CleanMax has been quietly running since 2010, and today, it's asking you to be part of it.

The Clean Max Enviro Energy Solutions IPO opened for subscription on 23rd February, and it wants to raise ₹3,100 crore. Out of this, the fresh issue includes ₹1,200 crore, and OFS (offer for sale) includes ₹1,900 crore.

The Company: India's Largest C&I Renewable Player

CleanMax isn't in the business of selling power to households or the government grid. It operates in a very specific, very lucrative corner of the renewable energy market—Commercial & Industrial (C&I) energy.

The model is straightforward: a company like Cisco wants to run on 100% clean energy. CleanMax either installs solar panels at their facility or builds a dedicated offsite renewable farm—solar, wind, or hybrid—and sells them electricity through a long-term Power Purchase Agreement. The contracts last an average of 22.8 years. Think of it as a subscription model, but for electricity.

Founded in Mumbai on September 29, 2010, CleanMax has scaled into a genuine market leader:

• 2.80 GW of operational owned and managed capacity (as of October 31, 2025)
• 3.17 GW of contracted capacity under execution — the pipeline is bigger than the live portfolio
• Clients include Amazon, Apple, Cisco, Equinix, and Google
• ~43% of contracted capacity comes from data centres and AI-driven infrastructure

That last point matters. The AI infrastructure build-out requires enormous, reliable power. C&I renewable providers that can lock in hyperscalers as 20-year customers are sitting on gold.

The Financials: Growth is Real, Profits Are Thin

The company swung from a ₹37 crore loss to a ₹19 crore profit in one year. But the numbers also reveal a structural reality.

Margins are razor thin. ₹19 crore of net profit on ₹1,610 crore of revenue is a margin of just 1.2%. Renewable energy is capital-intensive and debt-funded—the interest burden is real.

The IPO: Key Details

The fresh issue proceeds (₹1,200 crore) will fund capital expenditure for new renewable projects. The OFS (₹1,900 crore) means existing shareholders—including promoters and Brookfield—are cashing out. More than half the raise is an exit for early investors.

Promoters: Kuldeep Jain (founder & MD), Pratap Jain, Nidhi Jain, Brookfield's BGTF One Holdings (DIFC), and Kempinc LLP.

Allocation split:

• QIB (Qualified Institutional Buyers): 50%
• Retail investors: 35%
• NII (High Net Worth): 15%

The Valuation Question

The elephant in the room: a P/E of ~365x on FY25 earnings. That's not a typo. Most mature renewable energy companies globally trade at 20–40x earnings. 

The justification CleanMax makes is that this is an infrastructure asset with 22-year locked-in cash flows from investment-grade clients. You're not buying current earnings; you're buying a contracted revenue stream that looks more like a bond than a stock. Nearly all of CleanMax's customers carry an A-rating or above—the credit quality of the cash flows is exceptional.

But even with that framing, 365x demands flawless execution, continued pipeline growth, and no surprises in the debt refinancing cycle.

The Industry: Serious Wind at Its Back

CleanMax's timing is not accidental. India's C&I renewable energy segment is one of the fastest-growing in the entire energy market:

• India added 6 GW of C&I renewable capacity in 2025 alone
• Government targets 60–80 GW of C&I renewable capacity by 2030
• India's overall renewable energy market was valued at $25.95 billion in 2025, growing at 8.16% CAGR to reach $52.58 billion by 2034
• Industrial segment leads with a 47.09% share of the market in 2025
• India's renewable capacity addition in the first five months of FY26 was 20.1 GW—double the prior year's pace

And then there's the AI angle. Every hyperscaler building data centers in India needs power—reliable, clean, cost-effective power. CleanMax already has Amazon, Google, and Equinix. The next wave of AI infrastructure investment in India will almost certainly knock on their door first.

Green Flags vs Red Flags

Why this IPO is interesting:

• Dominant market position in a high-growth niche
• 22.8-year average PPA tenure = exceptional revenue visibility
• 77% repeat customer rate = strong execution credibility
• Data centre/AI exposure is a genuine structural tailwind
• Brookfield-backed = institutional credibility
• Turned profitable in FY25 after years of losses

Why to be cautious:

• P/E of 365x leaves zero margin for error
• GMP of just 0.28% — the grey market isn't excited
• ₹7,645 crore net debt at 2.39x D/E is a significant leverage burden
• ₹1,900 crore of the ₹3,100 crore raise is an OFS—existing investors exiting
• Top 10 customers = 35% of revenue—concentration risk
• Net profit margin of just 1.2% on ₹1,610 crore revenue

Should You Apply?

For long-term investors: CleanMax is building something real in a sector that India desperately needs. If you believe in the 15-year India renewable energy story, this is a quality asset. But the valuation assumes a lot of that future growth is already priced in.

For listing gains: The GMP of 0.28% is about as muted as it gets. Don't expect fireworks on March 2.

For the risk-tolerant: This is a high-quality infrastructure play with blue-chip customers, predictable cash flows, and a dominant market position. It just comes at a price that demands patience over 3–5 years, not months.

The bottom line: CleanMax is a quality business at a premium price in a sector with strong structural tailwinds. The over ~350x P/E is the gating question—and how comfortable you are with it will determine whether this IPO belongs in your portfolio.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a SEBI-registered advisor before making investment decisions.