As an investor, it can be very challenging to decide whether the Clean Max Enviro IPO is a good or bad investment. Not anymore, as in this blog, we will provide you with all the necessary details related to the Clean Max Enviro IPO to help you decide whether you should Apply or Not. Read on to know the IPO risks, strengths, valuation, financial details, and expert opinion to make your investment decision better.
Strengths:
- Track record of on-time and budget-friendly project development and management capabilities.
- Market leadership in C&I Renewables and a strong customer relationship.
- Strategic use of IPO funds and managing potential losses.
- The firm has a track record of maintaining a welcoming work culture, resulting in a low attrition rate of 5.48%.
Weaknesses:
- Around 78.76% of revenue comes from the renewable energy projects in Karnataka and Gujarat. If any negative happens in those areas can adversely affect the business.
- Some of the company’s Power Purchase Agreements (PPAs) and Energy Agreements (EAPAs) may end before the full compilation of the project. If unable to renew or sign the new agreements, can badly affect the revenue and cash flow of the company.
- As of March 2025, the company has a total borrowing of â‚ą7,973.70 crore.
- Unable to secure proper land or approvals to use land for solar and wind projects can negatively affect the business.
Clean Max Enviro IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Lakshmishree Investment & Securities | Apply |
| Aditya Birla Money | Apply |
| Ashika Research | Not Rated |
| Axis Capital | Not Rated |
| Capital Market | Neutral |
| SBICAP Securities | Not Rated |
| Swastika Investmart | Neutral |
| ICICI Direct | Not Rated |
| Way2Wealth Securities | Apply |
Promoters & Track Records, if any
- Kuldeep Jain, aged 50 years, is one of the Promoters and the Chairpersonand Managing Director of the Company. He holds 11,675,640 of Equity shares, representing 10.98% of paid-up capital.
- Pratap Jain, aged 81 years, is one of the Promoters of the Company and a Non-Executive Director on the Board. He holds 50,000 equity shares, representing 0.05% of paid-up capital.
- Nidhi Jain, born on March 1, 1975, aged 50 years, is one of the Promoters of the Company. She holds 501,300 equity shares, representing 0.47% of paid-up capital.
Peer Comparison with the Company
| Name of the Company | Face Value(â‚ą) | Basic EPS (â‚ą) | Diluted EPS(â‚ą) | RONW (%) | P/E Ratio | NAV(â‚ą) |
| Clean Max Enviro | 1 | 2.88 | 2.79 | 1.09% | 377.42 | 250.93 |
| Listed Peers | ||||||
| ACME SolarHoldings Ltd | 2 | 4.55 | 4.53 | 5.59% | 49.46 | 74.54 |
| NTPC GreenEnergy Ltd | 10 | 0.67 | 0.67 | 2.58% | 132.94 | 21.88 |
| Adani GreenEnergy Limited | 10 | 8.37 | 8.37 | 13.48% | 119.14 | 58.63 |
| ReNew EnergyGlobal PLC | 0.0001 USD | 10.92 | 10.81 | 3.39% | 44.84 | 310.40 |
Industry Peer Group P/E ratio
The P/E ratio among peers ranges from a high of 132.94 for NTPC Green Energy Limited to a low of 44.84 for ReNew Energy Global Plc, with an industry average of 86.59.
Expansion
- The Proceeds raised from the fresh issue will be used towards the repayment/prepayment of existing borrowings taken by the company.
- Lastly, the remaining funds will be used for inorganic growth through unidentified acquisitions and general corporate purposes.
Clean Max Enviro IPO—Should You Apply or Not?
Clean Max Enviro is contributing to India’s renewable power, energy services, and carbon credit solutions. The firm offers end-to-end services, including EPC, O&M for solar, wind, & hybrid plants for both onsite and offsite locations. Clean Max is one of the largest players in C&I renewable energy sector, holding 8% of the market share in 2025.
In terms of financials, in FY25 the firm generated revenue of ₹1,610.34 crore, up 12.98% YOY from ₹1,425.31 crore in FY24. The PAT also grew to ₹19.43 crore after experiencing a loss of ₹37.64 crore in FY24. The P/E ratio of Clean Max Enviro is 377.42x. Compared to the industry’s peer group, the IPO seems to be valued higher. Moreover, over the last 3 years, the firm has a low return on equity of 0.71%. The Clean Max Enviro GMP is ₹9, indicating a listing gain of around 0.85%.
Overall, Clean Max Enviro IPO features a strong market position, diversified customer base, the good use of IPO proceeds, backing of global investors, and consistent, long-term revenue supports future long-term growth. However, we cannot ignore some risks like Geographic & customer concentration, high-debt levels, and regulatory & policy dependence.
If the overall market sentiment and GMP stay in support, then investors can subscribe for the IPO for short-term gains. While cautious investors must analyze the risks associated with companies before subscribing.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
One Response
One must avoid this IPO due to following reasons.
1) scale & Leverage have not translated into return of equity. A business with 94% GM generates only 18% ROE based on cash profit as its capital intensive.
2) entry barriers are almost absent. Big companies like Adani, Tata can easily crush the business of clean max.
3) Kuldeep Jain said that company has to give 80-100% premium on acquisition of land leading to a stress on capital efficiency.
3) key promoter himself is selling the share at current valuation along with PE Firm despite his shareholding is below 25%. Further, PE Firm will also continue selling the shares.
4) At current valuation I.e, EV/EBITDA of 18 is extremely high and there is no margin of safety.