Clean Max Enviro's Rs 3,100 crore IPO booked 3% on Day 1 so far; should you subscribe? Check GMP

Clean Max Enviro IPO sees robust subscription in primary market. 

Clean Max Enviro initial public offer (IPO) got subscribed 3 percent on the first day of its share sale on Monday.

The IPO of Clean Max Enviro Energy Solutions, a commercial and industrial renewable energy provider, received 3 percent subscription on Monday, till 11:45 am. The company's IPO got bids for 6.6-lakh shares against 2.18-crore shares on offer, according to the NSE data.

The quota for retail individual investors was subscribed 1 percent, while the portion for qualified institutional buyers(QIBs) received 9 percent subscription. Earlier, it raised Rs 921 crore from anchor investors.

The company's Rs 3,100 crore initial public offering (IPO) will conclude on February 25. The company has fixed a price band of Rs 1,000-1,053 per share, valuing it at Rs 12,325 crore at the upper end.

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Clean Max Enviro IPO GMP Today Price

According to platforms tracking the grey market activities, the shares of Clean Max Enviro are commanding a flat GMP in the unofficial market.

Clean Max Enviro IPO: Should you subscribe?

The analysts at SBI Securities noted, that the company is India’s largest C&I renewable energy service provider with market share of about 8 percent. The company is net zero partner to corporate which consumes 50 percent of India’s total power having an estimated market size of Rs 3 trillion. The company enjoys premium power tariff vs utilities as average ticket size is 13 MW. The company has capital efficient (GB/EBITDA) model with one of the lowest Net Debt/Adj. EBITDA of 4.8x v/s industry is less than 6x. The green sourcing penetration for corporate at 7.5 percent in Mar 2023 is expected to touch 20 percent by FY30, indicating scalability for the business. At upper price band of Rs 1,053, the issue is valued at FY25 and annualized 1HFY26 EV/EBITDA multiple of 21.7x and 16.3x respectively based on post-issue capital.

Proceeds from the fresh issue amounting to Rs 1,125 crore will be used to repay debt, while the balance will go towards general corporate purposes.

Clean Max will make its stock market debut on March 2.

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