Clear Max Enviro Power Options Ltd – IPO Notice

Firm Overview

Clear Max Enviro Power Options Restricted is a renewable power options supplier targeted on supplying clear energy to business and industrial (C&I) clients by means of long-term contracted preparations and power infrastructure companies. The corporate operates by means of two segments: (i) Renewable Power Energy, beneath which it owns or co-owns photo voltaic, wind and hybrid property and provides electrical energy beneath long-term Energy Buy Agreements (PPAs) and Power Attribute Buy Agreements (EAPAs); and (ii) Renewable Power Companies, comprising turnkey growth, engineering, procurement and building (EPC), operation and upkeep (O&M), and capex options enabling clients to deploy captive renewable energy initiatives.

As of October 31, 2025, the corporate had 2.80 GW of operational, owned and managed capability and three.17 GW of contracted capability but to be executed throughout onsite and offsite renewable power initiatives. Its buyer base includes know-how clients, together with knowledge centre and digital infrastructure operators, alongside standard business and industrial enterprises.

Objects of the supply

The corporate is finishing up a ebook construct problem of Fairness Shares of face worth of Rs. 1 every aggregating as much as Rs. 3,100 crore, comprising a Recent Subject aggregating as much as Rs. 1,200 crore by the Firm and an Supply for Sale aggregating as much as Rs. 1,900 crore by the Promoting Shareholders.

The proceeds of the recent problem are to be utilized in the direction of the next objects:

• Compensation and/or pre-payment, partly or full, of all or sure excellent borrowings of the Firm and/or sure of its Subsidiaries.
• Normal company functions.

Funding Rationale

• Buyer stickiness supported by group captive construction – CleanMax’s renewable energy mannequin is anchored in long-term contracted preparations with clients, with operational and contracted capability carrying a weighted common PPA tenure of roughly 22.73 years. A good portion of initiatives are structured beneath the group captive framework, whereby clients purchase fairness stakes (no less than 26%) in project-specific subsidiaries (SPVs) and procure energy as captive shoppers, enabling exemption from sure grid surcharges, beneath which clients have invested ~Rs. 841 crore by means of fairness participation throughout 97 subsidiaries as of September 30, 2025, aligning energy consumption with possession pursuits. Group captive initiatives contributed 52.48 % of Renewable Power Energy Gross sales income as of H1FY26, up from 48.26% in H1FY25. Buyer fairness participation materially will increase switching prices, as termination would require exit from each long-term PPAs and invested challenge entities, supporting demand stability past contractual enforcement alone.

• Built-in platform enabling capital-efficient scalability – The corporate operates throughout asset possession, EPC execution, O&M companies and captive challenge growth, permitting deployment beneath a number of contracting buildings. As of October 31, 2025, CleanMax had 3.17 GW of contracted capability but to be executed, with 74.72% backed by agency PPAs/EAPAs and the stability ruled by letters of intent throughout 29 clients, offering ahead visibility into capability addition.
  The corporate additionally maintains a proactive growth technique by securing land, evacuation approvals and regulatory clearances nicely upfront of buyer contracting to cut back execution timelines. The flexibility to modify between possession and service-led deployment fashions permits development with out proportionate stability sheet enlargement, partially mitigating the inherent capital depth of renewable infrastructure.

• Seen development pipeline and partnership-led enlargement – CleanMax’s development technique is supported by a large execution pipeline, together with 1.35 GW of capability beneath building scheduled for commissioning by July 31, 2026, alongside continued enlargement of CTU-connected initiatives concentrating on know-how clients. The corporate has entered strategic collaborations together with a partnership with Toyota Tsusho Company to develop and function roughly 300 MW of renewable power initiatives by March 2028, and a co-investment association with Apple South Asia Pte. Ltd., beneath which its subsidiary Clear Max Hyperion Energy LLP is creating a portfolio of six rooftop photo voltaic initiatives aggregating 14.4 MW to produce renewable power to Apple’s places of work, retail shops and operations in India. The corporate has additionally undertaken worldwide enlargement by means of a three way partnership in Bahrain with 10.90 MW of onsite photo voltaic capability deployed as of October 31, 2025. Moreover, initiatives are being expanded throughout high-resource states corresponding to Gujarat, Rajasthan and Karnataka to serve rising knowledge centre clusters and industrial demand.

• Sturdy execution and asset reliability – CleanMax’s operational monitor file displays constant execution throughout commissioning, asset efficiency and buyer enlargement. The corporate has scaled its C&I operational capability from 1,040 MW in FY23 to 2,178 MW in FY25, alongside commissioning 422.78 MW in the course of the trailing twelve months ended FY25, indicating sustained execution momentum. Operational reliability stays robust, with portfolio-level plant availability maintained at roughly 98% and grid availability round 99%, supporting steady energy supply beneath long-term contractual preparations. Moreover, repeat orders accounted for 77.28% of recent contracted volumes in FY25, reflecting a significant contribution from present clients to incremental capability additions.

Key Dangers

• Restricted development capital infusion – Majority of the IPO is an OFS, representing shareholder monetisation fairly than development capital infusion. A good portion of the Recent Subject proceeds is proposed to be utilised towards reimbursement or prepayment of borrowings, positioning the providing largely as a stability sheet deleveraging train. Whereas debt discount could enhance leverage metrics, restricted main capital deployment towards capability enlargement implies that future development will proceed to rely on project-level financing, inner accruals and partnership-led capital deployment.
• Regulatory dependence – A considerable portion of initiatives function beneath group captive and open-access buildings that profit from regulatory concessions and surcharge exemptions. Any antagonistic modifications in state electrical energy insurance policies, withdrawal of incentives, or tightening of open-access laws might improve efficient energy tariffs for patrons and cut back demand beneath these preparations.

• Capital-intensive mannequin and margin sensitivity – The renewable power enterprise requires important upfront capital funding, leading to elevated finance and depreciation bills throughout asset ramp-up phases. In FY25, regardless of EBITDA of Rs. 1,015 crore, revenue after tax stood at solely Rs. 19.4 crore, reflecting the affect of curiosity and depreciation. As capability scales, earnings stay delicate to borrowing prices, refinancing situations and asset amortisation timelines, which can constrain profitability regardless of working development.

• Execution threat – As of October 31, 2025, the corporate had 3.17 GW of contracted capability but to be executed, together with 1.35 GW beneath building, requiring well timed completion throughout land acquisition, approvals and grid connectivity. Any delays in commissioning might defer income recognition and affect anticipated money flows.

Outlook

CleanMax Enviro Power Options has positioned itself as a differentiated renewable power platform with a give attention to C&I clients. The corporate advantages from long-term income visibility, complemented by a scalable companies section with a visual execution pipeline and operational energy. Nevertheless, the enterprise stays inherently capital intensive, with profitability presently moderated by elevated finance and depreciation prices. Development execution depends on continued entry to challenge financing, steady regulatory assist for open-access and captive buildings, and well timed commissioning of a sizeable contracted pipeline. Whereas operational efficiency and buyer partnerships present visibility, earnings development will stay linked to stability sheet self-discipline and profitable conversion of contracted initiatives into working property.

In accordance with the RHP, the corporate’s listed friends are ACME Photo voltaic Holdings Ltd, NTPC Inexperienced Power Ltd and Adani Inexperienced Power ltd, amongst others. The trade peer group is buying and selling at a median EV/EBITDA of twenty-two.72x, the very best being 41.91x, and the bottom being 9.85x. On the higher worth band, the itemizing market capitalization of CleanMax can be Rs. 12,325 crore, and the corporate is demanding an EV/EBITDA of ~16.63x, primarily based on the put up problem EV, and annualized H1FY26 EBITDA. When in comparison with its friends, the problem seems pretty valued. The valuation hole relative to bigger renewable power platforms displays the corporate’s comparatively smaller working scale, and evolving profitability profile. Buyers ought to view the corporate as a gentle compounding renewable infrastructure play pushed by capability scale-up fairly than near-term earnings acceleration. We assign a ‘Subscribe’ score for long-term traders.

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