Clean Max IPO set to deliver multifold gains to promoters, early investors

Promoters and early backers of Clean Max Enviro Energy Solutions Ltd are poised for substantial gains as the company gears up for its initial public offering. The company has fixed a price band of Rs 1,000–1,053 per share, valuing it at around Rs 12,029 crore at the upper end. According to the red herring prospectus, the weighted average cost of acquisition of all equity shares transacted in the last one year stood at around Rs 681 per share. Promoter Kuldeep Jain, managing director of the firm, who holds a 10.98 percent stake or 1.17 crore shares at an average cost of Rs 0.7 per share, is set for significant gains. His holding, previously valued at around Rs 80 lakh before the price band announcement, is now valued at approximately Rs 1,229 crore at the upper end. Similarly, Pratap Jain and Nidhi Jain, whose stakes were earlier valued at around Rs 35,000 and Rs 1.3 crore respectively, now see their holdings valued at about Rs 5.3 crore and Rs 53 crore. Brookfield’s BGTF One Holdings, which holds 3.35 crore shares, saw the value of its stake rise from around Rs 1,452 crore before the price band to approximately Rs 3,519 crore post announcement, marking a 143 percent increase. Kuldeep Jain and Nidhi Jain-owned KEMPINC LLP, which holds 1.37 crore shares acquired at an average cost of Rs 311.4 per share, saw its holding rise in value from around Rs 426 crore to about Rs 1,440 crore, reflecting a 238 percent gain. Augment India 1 Holdings LLC, holding 1.63 crore shares at an average cost of Rs 285.3 per share, saw the value of its investment increase from around Rs 463 crore to approximately Rs 1,709 crore, marking a 269 percent rise. DSDG Holdings APS, which owns 36.8 lakh shares, saw its holding value increase from around Rs 106 crore to about Rs 387 crore, reflecting a 265 percent gain. Earlier, Temasek Holdings and Bain Capital Advisors, along with three other investors, acquired shares worth Rs 1,185 crore in Brookfield Asset Management-backed Clean Max via a pre-IPO placement. The placement also attracted Steadview Capital, 360One, Steinberg India Emerging Opportunities Fund and several family offices, including those of the Dalmia Group, and the Jaisinghani and Taparia families. Investments from family offices were routed through TrustGroup led by Utpal Sheth, former chief of Rare Enterprises. Temasek and Bain Capital are expected to collectively hold close to a 10 percent stake in the company following the transaction. Incorporated in 2010, Clean Max specialises in delivering net-zero and decarbonisation solutions. As of July 2025, it had 2.54 GW of operational, owned and managed capacity and 2.53 GW of contracted capacity yet to be executed. The IPO will open for subscription on February 23 and close on February 25. The anchor book will open on February 20. The basis of allotment is expected to be finalised by February 26, and the stock is scheduled to list on March 2. The total offer size has been revised to Rs 3,100 crore. The issue comprises a fresh issue of shares worth Rs 1,200 crore and an offer for sale of shares aggregating Rs 1,900 crore. The company proposes to utilise Rs 1,125 crore from the fresh issue proceeds to repay debt. As of March 2025, its total outstanding borrowings stood at Rs 8,078.1 crore on a consolidated basis. Clean Max provides energy contracting, engineering, procurement and construction services, and operation and maintenance services for renewable energy plants, including solar, wind and hybrid projects. The company reported a profit of Rs 19.4 crore in fiscal 2025, compared with a loss of Rs 37.6 crore in the previous year. Revenue rose 7.6 percent to Rs 1,495.7 crore from Rs 1,389.8 crore. The merchant bankers managing the IPO include Axis Capital, JP Morgan India, BNP Paribas, HSBC Securities and Capital Markets (India), IIFL Capital Services, Nomura Financial Advisory and Securities (India), BOB Capital Markets and SBI Capital Markets.