Temasek and Bain Invest ₹1,500 Crore in CleanMax: IPO Plans Explained

CleanMax Enviro Energy Solutions has raised  ₹1,500 Crores as part of a series of 5 pre-IPO funding rounds through Temasek Holdings & Bain Capital in advance of its anticipated IPO. The timing of this capital raise is particularly important to the company, given that IPR, which invests capital in Recurring Revenues, will be used for the IPO, and that IPR is highly respected around the world as a leader in Capital Raising. With this capital backing and additional institutional investment, CleanMax appears to have the best opportunity for building its balance sheet and completing an IPO.

About The Upcoming IPO:

Here’s the upcoming IPO info on CleanMax in simple points:

• The company has received approval from SEBI to issue its Initial Public Offering (IPO) to raise ₹ 5,200 crores through an Equity IPO. CleanMax will provide ₹ 1,500 crores as new equity, and the remaining ₹ 3,700 crores will consist of shares of other investors being offered for sale.

  
  

• Most of the proceeds from the IPO will be used to retire existing debt, pay back loans, and for other general corporate purposes.

  
  

• As the IPO is still subject to receiving final approvals from SEBI, the exact date and price range of shares from CleanMax have yet to be disclosed. However, since they have received preliminary approval from SEBI, we should see the announcement of the final date and price range before the end of the month.

  
  

• With this type of financial backing and being one of the largest clean energy IPOs in India at present, CleanMax will be well-poised to capitalise on the growing interest by corporations in purchasing renewable energy. 

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Company Origin: CleanMax Enviro Energy Solutions

Established in 2010 in Mumbai, CleanMax Enviro Energy Solutions is a major renewable energy player working with commercial and industrial customers. Rather than generating power for state utility companies, the company provides clean energy directly to corporations through long-term contracts. 

Through the installation of new technologies, CleanMax has been able to expand its business model from selling solar power solely through traditional utility channels to becoming a diverse energy service provider for all types of renewable energy products.

The company has developed a long-term supply agreement model that generates predictable cash flows from the sale of electric power. With the increasing number of people who are interested in purchasing renewable energy in India as a result of government policy changes, CleanMax has a strong opportunity to grow as one of the leaders in providing these types of solutions to consumers.

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Key Financials

Particulars (Rs Cr)	FY25	FY24	FY23
Revenue	1496	1390	930
EBITDA	1009	772	424
– Power Sales Segment	955	667	376
– Services Segment	54	105	48
EBITDA Margin (%)	68%	56%	46%
Gross Margin – Power Sales	93%	93%	93%
Gross Margin – Services	16%	25%	13%
PAT	19	-38	-59
PAT Margins	1.3%	-2.7%	-6.3%
Total Borrowings (In Rs Cr)	7973	5514	3843
CCC (In days)	(795)	(746)	(586)
Debt to Equity Ratio	1.97x	2.17x	2.16x

• Strong Revenue & EBITDA Growth: The topline has given a high growth of 27% CAGR from Fy23 to Fy25. While the revenue growth in Fy25 has been low at 7.6%. The EBITDA margins have improved significantly over the years, showing solid operational expansion, mainly driven by the high-margin Power Sales segment.

  
  

• Turnaround in Profitability: The company has finally achieved positive PAT of ₹19 Cr in FY25, indicating improved financial stability and better cost control.

  
  

• Gradual Balance Sheet Improvement: While debt remains on the higher side, the debt-to-equity ratio has slightly improved, suggesting a gradual strengthening of the company’s financial position.

About The Management

Kuldeep Jain is the Founder & Managing Director of CleanMax Enviro Energy Solutions. As founder & MD, he has been a critical component in CleanMax's continued development from the beginning. After working at McKinsey & Company and graduating from IIM Ahmedabad, he has played an instrumental part in moving CleanMax into new geographies in India & select areas of the world.

CleanMax is also financially supported by established institutional investors (Brookfield, & pre-IPO investors like Temasek & Bain Capital), which indicates their confidence in CleanMax's leadership & long-term growth plan.

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Peer Analysis

Particulars	Clean Max Enviro Energy Solutions	ACME Solar Holdings Ltd	NTPC Green Energy Ltd	Adani Green Energy Ltd
Revenue	1,496	1,405	2,210	11,212
EBITDA %	67%	89%	87%	79%
PAT	19	251	474	2,001
PAT %	1.3%	18%	21%	18%
D/E Ratio	1.97x	2.72x	1.16x	4.52x
Mcap.	4,372	13,798	73,629	1,61,711
P/E	230.5x	27.5	132.0	98.1

• Smaller Scale vs Peers: CleanMax’s revenue is comparable to ACME but significantly lower than NTPC Green and Adani Green, indicating it is still a mid-sized player in the sector.

  
  

• Lower Profitability: The operating margins are healthy. The PAT margin, however, is lower than that of its peers, indicating the scope of improvement and efforts by the management.

   

• Moderate Debt but Premium Valuation: While the debt levels are in the fair range relative to the competitors, the implied P/E is extremely high, making the company overvalued.

Conclusion

The ₹1,500 crore pre-IPO investment by Temasek and Bain Capital illustrates that there is substantial institutional confidence related to ₹5,200 crore CleanMax IPO. As CleanMax has been improving its financials, continuing to add to its renewable portfolio, and seeing more corporate demand for Clean Energy, it is coming to market at a very advantageous time for growth. 

Two of the biggest things to watch for CleanMax are their profitability and debt levels. Still, with the long-term contracts and expansion plans in CleanMax’s business model, they will be well-positioned for future expansion throughout India’s Renewable Energy sector.

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