- Institutional demand hit 2.83×; retail demand stalled at 0.06×.
- Anchor investors pumped in ₹921 crore, signaling confidence.
- Clean Max commands 2.80 GW operational capacity – the largest private renewable portfolio in India.
- Revenue CAGR 52.7% and EBITDA CAGR 58.1% outpace peers by more than double.
- IPO priced at ~16× EV/EBITDA – a rare mid‑cap valuation in a high‑growth sector.
You missed the quiet surge in Clean Max's IPO—now's the moment to act.
Why Clean Max's Institutional Demand Beats Retail Apathy
The qualified institutional buyer (QIB) tranche was subscribed 2.83 times by the close of day three, while the non‑institutional (NIIS) slice saw a modest 0.54× fill. Retail investors, by contrast, barely nudged the needle at 0.06×. Such a skew is typical for capital‑intensive, infrastructure‑heavy offerings where large funds seek exposure to stable cash‑flows and long‑term ESG mandates. For a retail‑heavy market, the disparity itself is a signal: the smart money believes the pricing is attractive and the growth narrative credible.
How the IPO Structure Unlocks ₹921 Crore Anchor Funding
Clean Max's ₹3,100 crore offering blended a fresh issue of 1.14 crore shares (₹1,200 crore) with an offer‑for‑sale (OFS) of 1.80 crore shares (₹1,900 crore). The anchor placement – led by Nomura, SBI Life, Tata Investment Corp, and HDFC MF – locked in ₹921 crore before the book‑building began. Anchor commitments serve two purposes: they provide a price floor and they reassure other investors that the issue has been vetted by seasoned players. The OFS component also allowed existing shareholders to monetize stakes without flooding the market, preserving price stability.
Sector Pulse: Renewable Energy Momentum in India
India's renewable rollout is accelerating under the government's 450 GW target by 2030. Clean Max, with 2.80 GW operating and 3.17 GW under contract, sits at the sweet spot of capacity expansion and contracted revenue pipelines. The sector’s average revenue growth sits around 20% CAGR, yet Clean Max posted a 52.71% revenue CAGR and a 58.14% EBITDA CAGR from FY23‑FY25, per the CRISIL analysis. This outperformance reflects not only scale but also a diversified service suite – from turnkey project delivery to carbon‑credit monetisation – that insulates earnings from pure power‑price volatility.
Competitive Landscape: Clean Max vs. Tata Power & Adani Green
Peers such as Tata Power Renewable and Adani Green have market‑cap valuations ranging between 12‑18× EV/EBITDA, but their growth rates lag (average revenue CAGR ~25%). Clean Max’s higher multiple is justified by its faster growth, larger contracted pipeline, and a business model that captures both generation and ancillary services. Moreover, the company’s founder‑CEO Kuldeep Jain remains at the helm, providing continuity and a founder‑centric vision that many investors find reassuring compared to more diffused management structures.
Valuation Deep‑Dive: EV/EBITDA at 16× – What It Means
Enterprise Value (EV) divided by EBITDA is a clean metric that strips out capital‑structure bias. At the top of the price band, Clean Max trades around 16× EV/EBITDA. While this sits on the higher side of the sector range, it reflects the premium for accelerated growth and the low‑cost capital profile of renewable assets (high operating margins, low fuel cost). For investors, the key is to compare forward‑projected EBITDA – which is expected to keep accelerating – against the multiple. If the company can sustain its 58% EBITDA CAGR, the effective forward multiple compresses, delivering upside.
Investor Playbook: Bull and Bear Scenarios
Bull Case: Continued policy support, successful execution of the 3.17 GW contracted pipeline, and scaling of carbon‑credit services push revenue and EBITDA beyond consensus. A modest re‑rating to 18‑20× EV/EBITDA within 12‑18 months yields a 30‑40% total return for investors who entered at the lower band.
Bear Case: Delays in project clearances, slower than expected carbon‑credit monetisation, or a macro‑credit crunch increase financing costs. If EBITDA growth stalls below 30% CAGR, the 16× multiple looks stretched, potentially capping upside and exposing investors to a 15‑20% downside.
Aditya Birla Money’s long‑term subscription recommendation aligns with the bull narrative, but prudent investors should size exposure based on risk tolerance, possibly using a staggered entry across the price band.
In short, Clean Max's IPO offers a rare blend of high‑growth fundamentals, institutional confidence, and sector tailwinds. Whether you are a value‑seeker or a growth‑oriented trader, the story merits a close read and a calibrated position in your portfolio.