Clean Max Enviro Energy Solutions IPO Day 2: Issue sees weak demand, booked 45%; GMP signals flat listing

Clean Max Enviro Energy Solutions IPO: The initial public offering (IPO) of Clean Max Enviro Energy Solutions, which opened for bidding on Monday, February 23, saw a weak response from investors. The isse was not fully booked even by the end of Day 2. The qualified institutional buyer (QIB) quota was fully the only one fully subscribed till now. Clean Max Enviro Energy Solutions IPO subscription status as of 5 pm stood at 45% as the offer garnered bids for 97.59 lakh shares compared with 2,18,23,329 shares on offer. Clean Max Enviro Energy Solutions IPO's QIB segment was fully booked at 1.21 times while, the non-institutional investor (NII) quota was subscribed just 41%. Moreover, the retail and employee quotas garnered just 4% and 5% bids, respectively. Clean Max Enviro Energy Solutions IPO GMP The grey market premium (GMP) for Clean Max Enviro Energy Solutions IPO has declined to ₹0 from ₹1 earlier. The current GMP signals that Clean Max Enviro Energy Solutions IPO listing price is likely to be ₹1,053, same as issue price. It was ₹4 on Feb 22, and ₹14 on Feb 17. Clean Max Enviro Energy Solutions IPO details The ₹3,100 crore initial public offering will stay open for subscription until February 25. The basis of allotment is scheduled to be finalised on February 26, while the shares are expected to list next week on March 2. Clean Max Enviro Energy Solutions IPO price band is set at ₹1,000 to ₹1,053 per share. The issue comprises a fresh issue of shares worth ₹1,200 crore along with an offer for sale (OFS) aggregating ₹1,900 crore. The OFS will see stake dilution by founder Kuldeep Pratap Jain, BGTF One Holdings (DIFC) Ltd, KEMPINC LLP, Augment India I Holdings LLC and DSDG Holdings APS. Ahead of the public issue, the company raised ₹921 crore from anchor investors on Friday. Proceeds from the fresh issue will be primarily utilised for debt reduction, with ₹1,125 crore earmarked for loan repayment. The balance amount will be deployed towards general corporate purposes. As per the proposed timeline, the company will finalise the allotment on Thursday, February 26. Subject to regulatory approvals, the equity shares are slated to be listed on both the BSE and NSE on Monday, March 2. Retail investors can apply for the IPO in a minimum lot size of 14 equity shares. At the upper end of the price band, one lot translates into an investment of ₹14,742. Applications can be made for additional lots in multiples of the prescribed lot size. Axis Capital Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue. Clean Max Enviro Energy Solutions: Should you subscribe? Gaurav Garg, Research Analyst at Lemonn Markets Desk recommends 'Subscribe for long-term investors', supported by strong sector tailwinds, accelerating C&I renewable adoption, and sustained structural demand driven by data centres and AI-led power consumption. "India’s leading C&I renewable energy player, backed by a strong capacity pipeline, premium tariffs, and long-tenure PPAs (23 years), with high repeat clientele and robust project-level ROE (35%). Valuations, however, appear stretched at 16x EV/EBITDA, particularly in the context of elevated leverage (Net Debt/Equity of 2.5x)," he said. About Clean Max Enviro Energy Solutions Established in 2010, Clean Max offers renewable energy solutions to commercial and industrial customers, with a focus on net-zero targets and decarbonisation initiatives. Its portfolio spans wind, solar and hybrid power solutions, along with energy services and carbon credit offerings. In addition to power generation, the company provides end-to-end renewable energy solutions such as energy advisory services and carbon credit management. Its client base includes technology-led corporates as well as traditional industrial and commercial enterprises, allowing it to address a wide range of clean energy requirements. On the financial front, revenue from operations increased 13% to ₹1,610.34 crore in FY25, compared with ₹1,425.31 crore in FY24. The company also returned to profitability, reporting a net profit of ₹27.84 crore in FY25. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.