Clean Max Enviro Energy Solutions IPO

Inception & Evolution

• Incorporated in 2010 as a private company to address the rising energy cost and sustainability challenges of corporates.

• Initially focused on rooftop solar for industrial clients.

• Over time, expanded into:

  • Open access solar

  • Wind energy

  • Wind-solar hybrid projects

  • International markets (Middle East & Southeast Asia)

• Converted into a public limited company in 2025 as part of its IPO readiness strategy.

Geographic Presence

Clean Max has one of the widest renewable asset footprints in the corporate power segment.

Core Business Segments

Indian Corporate Renewable Energy Market

Clean Max operates in the Corporate Renewable Power Market, a high-growth sub-segment of India’s renewable energy industry.

Key Industry Growth Drivers

• Net Zero & ESG commitments by corporates

• Rising grid power tariffs

• Government incentives for renewable integration

• Predictable long-term PPAs (15–25 years)

Regulatory Environment

The market is regulated by:

• MNRE (Ministry of New & Renewable Energy)

• State Electricity Regulatory Commissions (SERCs)

• SEBI & Companies Act for listed entities

Key supportive policies include:

• Open Access Renewable Policy

• Green Energy Open Access Rules, 2022

• Waiver of ISTS charges for renewable energy

Future Outlook

• Increasing 24x7 renewable demand

• Growth in hybrid and storage-linked projects

• Corporate customers expected to contribute 40%+ of new RE capacity by 2030

What Clean Max Does

Clean Max develops, owns, and operates renewable power assets and supplies clean electricity directly to corporate customers under long-term contracts.

Business Model Snapshot

Target Customers

Position in Value Chain

Clean Max is fully integrated:

• Project development

• Asset ownership

• Power generation

• Operation & maintenance

• Energy management

This integration improves cost control, reliability, and margins.

Major Laws & Regulations

Environmental & ESG Compliance

• Mandatory environmental clearances

• Carbon emission reporting

• ESG disclosures post listing

Key Business Risks

Financial & Operational Risks

• Dependence on long-term debt financing

• Rising interest rates impact project IRRs

• Complex subsidiary structure increases compliance burden

Promoter Vision

The promoter group has steered Clean Max from a rooftop solar startup into a multi-GW renewable platform with international operations.

Clean Max operates through a large network of subsidiaries and LLPs, each typically created as a Special Purpose Vehicle (SPV) for owning and operating individual renewable energy assets. This structure enables ring-fencing of project-level risks and optimized financing.

Group Structure Overview

Key Subsidiaries (Illustrative)

Insight:
Each SPV typically signs a long-term Power Purchase Agreement (PPA) with a single or limited number of corporate customers, improving revenue visibility.

Board of Directors

Key Managerial Personnel (KMP)

Management Strength:

• Deep experience in project finance, renewable execution, and corporate power contracting

• Strong institutional governance influenced by global investors

Clean Max follows governance standards aligned with SEBI Listing Regulations.

Board Committees

Governance Highlights

• Majority independent directors

• Formal risk management framework

• Periodic internal and statutory audits

Litigation Overview

Nature of Litigations

• Land title disputes (common in infrastructure)

• Contractual matters with vendors

• Tax-related assessments at SPV level

Management View:
None of the ongoing cases are expected to materially impact business continuity.

Clean Max and its subsidiaries hold all material approvals required to operate renewable assets.

Key Approvals

Consolidated Financial Snapshot (₹ million)

Revenue Composition

Key Observations

• Strong revenue CAGR driven by capacity additions

• Stable margins due to long-term PPAs

• Asset-heavy balance sheet typical of infrastructure companies

Total Borrowings (Consolidated)

Major Lenders

• State Bank of India

• Power Finance Corporation

• Aditya Birla Finance

• Tata Capital

• Aseem Infrastructure Finance

Insight:
Most debt is non-recourse and ring-fenced at SPV level.

Cash Flow Summary (₹ million)

Interpretation

• Operating cash flows are supported by long-term PPAs

• Negative investing cash flows reflect growth investments

• Financing inflows aligned with project commissioning

Management Commentary Highlights

• Focus on capital-efficient growth

• Scaling hybrid and international assets

• Selective bidding to protect IRRs

• Asset monetisation and refinancing strategy

Growth Strategy

Objects of the Offer (Fresh Issue)

Strategic Rationale

• Strengthen balance sheet

• Reduce cost of capital

• Improve financial flexibility

• Enable future capacity expansion

IPO Pricing Approach

The issue price for Clean Max has been determined through the book-building process in accordance with SEBI ICDR Regulations, considering both company-specific fundamentals and industry benchmarks.

Key Valuation Parameters Considered

Comparable Industry Metrics (Indicative)

Insight:
Clean Max commands a valuation premium due to:

• Corporate customer focus (lower DISCOM risk)

• Long-term contracted revenues

• Hybrid and international asset mix

Equity Share Capital

Capital Structure Snapshot

Note:
The IPO does not involve issuance of preference shares; existing CCPS have been or will be converted into equity prior to listing.

Post-IPO Ownership Split

Key Takeaway

• Promoters continue to retain management control

• Partial dilution improves liquidity and governance

• Strong institutional presence post listing

Clean Max has adopted a formal dividend policy in line with SEBI requirements.

Dividend Philosophy

Investor Perspective

• Not a high-dividend stock in the near term

• More suited for long-term capital appreciation

• Potential yield play post debt reduction

For Individual Investors (India)

For Foreign Investors

• Subject to DTAA benefits

• Withholding tax may apply on dividends

Disclaimer:
Taxation depends on individual circumstances and future amendments.

Clean Max engages in related party transactions primarily with subsidiaries and SPVs, which is typical for infrastructure platforms.

Nature of Transactions

Governance Safeguards

• Transactions conducted at arm’s length

• Approved by Audit Committee

• Disclosed in financial statements

Material Contracts Related to the IPO

Business-Critical Contracts

IPO Structure

Investor Reservation

Shareholder Rights

Additional Protections

• Minority shareholder safeguards

• SEBI-mandated disclosures

• Transparent governance

Mandatory Disclosures Covered

Clean Max Enviro Energy Solutions Limited represents a large-scale, corporate-focused renewable energy platform with:

• Predictable long-term revenues

• Strong ESG alignment

• Scalable business model

• Asset-heavy but cash-stable structure

This IPO is best suited for long-term investors seeking exposure to India’s decarbonisation and corporate clean energy transition.