Clean Max Enviro shares to list today. Check GMP ahead of debut

Synopsis

Clean Max Enviro Energy Solutions shares will list on BSE and NSE on March 2. Grey market signals suggest a weak debut. The IPO saw mixed subscription, with institutional investors showing interest but retail and non-institutional investors remaining cautious. The company is India's largest commercial and industrial renewable energy provider.

Shares of Clean Max Enviro Energy Solutions are scheduled to list on BSE and NSE on March 2, with grey market signals pointing to a weak start. The Rs 3,100 crore IPO is currently quoting at a negative GMP, indicating expectations of a listing below the issue price of Rs 1,053 per share.

The IPO, which closed on February 25, was subscribed 0.99 times overall, just about managing to sail through on the final day. Subscription patterns showed a sharp divergence across categories.

The QIB portion, excluding anchors, was subscribed 2.99 times, reflecting institutional interest. However, the non-institutional investor segment was subscribed only 0.57 times, while retail participation was extremely muted at 0.07 times. The employee portion saw 0.11 times subscription.

Ahead of the issue, the company had raised Rs 921 crore from anchor investors.

Gaurav Garg of Lemonn Markets Desk said the IPO's subscription trend reflects a measured response in the current environment. He noted that institutional investors appeared selective but constructive on the renewable energy platform and long-term corporate power purchase agreements. However, retail and NII participation remained cautious, likely due to valuation comfort, capital intensity and near-term return visibility concerns.

The IPO comprised a fresh issue of Rs 1,200 crore and an offer for sale of Rs 1,900 crore.

Clean Max is India's largest commercial and industrial renewable energy provider as of March 2025, according to a Crisil report. The company has 2.54 GW of operational capacity and another 2.53 GW under execution. It supplies renewable power under long-term PPAs to corporate customers, including technology and industrial companies.

Financially, the company has shown revenue growth but operates in a capital-intensive business. For FY25, total income stood at Rs 1,610.34 crore, while profit after tax was Rs 19.43 crore.

At the issue price, the stock is valued at a steep earnings multiple, with a post-issue P/E of over 300 times based on historical earnings.

The net proceeds from the fresh issue will primarily be used for repayment or pre-payment of borrowings amounting to Rs 1,122.67 crore, with the balance for general corporate purposes.

Given the just-about subscription levels and negative GMP, listing gains appear unlikely at this stage. Market participants expect a cautious debut, with performance likely to depend more on institutional demand and broader market sentiment rather than retail-driven momentum.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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