<div id="readability-page-1" class="page"><div>Highlights<ul><li>India’s largest C&amp;I renewable energy solutions provider</li><li>2.8 GW operational capacity with a 3.17 GW pipeline</li><li>Long-term PPAs ensure stable cash flow visibility</li><li>Strong repeat client base at 71.72 percent</li><li>Backed by Brookfield and Temasek</li></ul>Around 2010, Kuldeep Jain, an IIM Ahmedabad graduate, while serving as a senior partner at global consulting firm McKinsey, identified a significant opportunity in India’s evolving renewable energy sector.He recognised that beyond large utility-scale projects, the commercial and industrial segment remained under-penetrated.Acting on this conviction, Kuldeep Jain invested his personal savings and founded Clean Max Enviro Energy Solutions in 2010. Over the years, the company has carved out a distinct position.Clean Max develops, owns and operates renewable power assets for commercial and industrial clients that prefer to outsource their energy requirements rather than deploy capital and manage such infrastructure internally. Its client portfolio includes global corporations such as Google, Apple, Cisco and Amazon, taking its total customer base to 555.Headquartered in Mumbai and backed by marquee investors, such as Brookfield and Temasek, the company provides on-site solar and wind-solar hybrid solutions to corporates pursuing sustainability and net-zero commitments.A differentiated business modelClean Max operates about 20 renewable parks and has projects across 23 states. With 2.8 GW operational capacity and a 3.17 GW pipeline — of which 2.4 GW is tied to data centres and AI infrastructure clients — it is the leader in India’s C&amp;I (Commercial &amp; Industrial) renewable segment.The strength of its model lies in long-term power purchase agreements (PPAs). The weighted average PPA tenure stands at 22.85 years, with a lock-in period of 16.86 years, ensuring durable revenue visibility. Notably, 71.72 percent of contracted capacity in H1FY26 came from repeat customers, indicating client stickiness.Revenue modelThe capital structure is equally distinctive. A typical renewable project is funded with around 70 percent project-level debt and 30 percent equity. Of the equity portion, roughly 25–26 percent is contributed by the customer, leaving Clean Max to invest about 10 percent of the total project cost.Given that a solar project costs roughly Rs 3.2 crore per MW and wind around Rs 7.5 crore per MW, most corporates prefer this outsourcing model to avoid balance sheet expansion and capital lock-in.Clean Max earns through long-term PPAs signed at pre-agreed tariffs, with weighted average realisations of around Rs 3.6–3.7 per unit. At the project level, returns are robust, with cash return on equity of about 35 percent and an equity payback period of 2.5-3 years. While consolidated return ratios appear muted due to front-loaded capital deployment, the underlying project economics remain strong.<figure></figure>Capital strengthening through IPOThe proposed Rs-3,100 crore IPO comprises a fresh issue of Rs 1,123 crore and an offer for sale (OFS) of Rs 1,900 crore. Additionally, internal accruals of Rs 400–500 crore are expected, taking incremental capital availability to roughly Rs 1,600–1,800 crore by the end of the current fiscal.<figure></figure>Given that the weighted average plant cost is approximately Rs 5–5.5 crore per MW and projects are largely funded with 70 percent debt and partial customer equity, the additional capital should comfortably support the next 2-3 years of growth capex (around 5000-6000 MW). This provides strong visibility for capacity expansion.From a leverage perspective, current (H1FY26) net debt stands around Rs 9,000 crore against a net worth of Rs 2,660 crore. After the IPO and internal accruals, net worth could rise to around Rs 4,500 crore by FY26-end, significantly improving the net debt-to-equity (around 1.7 times) profile and enhancing future borrowing capacity.Importantly, renewable businesses have high accounting depreciation but relatively low maintenance capex. As a result, cash metrics better reflect performance. In FY25, cash profit stood at Rs 325 crore with cash return on equity of 15 percent, compared with a reported net profit of Rs 19.4 crore and return on equity of 1.27 percent.<figure></figure><figure></figure>Industry opportunity and growth potentialThe C&amp;I renewable penetration in India remains relatively low, compared to the total industrial power consumption base. With increasing ESG (Environmental, Social, and Governance) mandates, decarbonisation commitments and compliance pressures, adoption is likely to accelerate.Data centres and AI infrastructure — segments with high and predictable energy consumption — represent an emerging growth driver. Clean Max’s 2.4 GW tied pipeline in this segment enhances forward revenue visibility.As more corporates commit to net-zero targets, outsourcing renewable energy through long-term PPAs is expected to remain the preferred model, especially when core businesses demand capital allocation priority.Valuations and final viewRenewable asset companies are typically valued on an EV/EBITDA (Enterprise Value/ Earnings before interest, tax, depreciation, and amortisation) basis, given their capital-intensive yet stable cash flow nature. At the upper price band (Rs 1,053), the IPO is priced at 15.3 its estimated FY26 EV/EBITDA multiple, which is reasonable, considering the long-term visibility and structural tailwinds.On a price-to-book basis, the valuation stands at about 2.7 times. In comparison, peers such as ACME Solar, which focus more on utility-scale projects supplying DISCOMs (distribution companies), trade around 17 times EV/EBITDA and 2.7 times book value. We see this as a long-term opportunity.For more research articles, visit our Moneycontrol Research page</div></div>

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Clean Max, India's largest C&I renewable energy provider, is set to launch a Rs 3,100 crore IPO to support its growth. With 2.8 GW operational capacity and a 3.17 GW pipeline, the company focuses on long-term power purchase agreements (PPAs) to ensure stable cash flow. Backed by Brookfield and Temasek, Clean Max serves major clients like Google and Amazon. The IPO aims to strengthen capital for expansion, enhancing its net worth and borrowing capacity. The valuation at the upper price band is reasonable, reflecting strong growth potential in the renewable sector.

Clean Max IPO: Can it power Corporate India’s green transition?