Cleanmax enviro solutions Ltd

CleanMax enviro solutions 

CleanMax enviro solutions provides Renewable Energy to Commercial & Industrial (C&I) customers. It provides power sales through long term contracts (74% of Revenue in FY25), Capex services through EPC contracts and Operation and maintenance (O&M) services. It has 531 customers including Google, Equinix, CISCO, Apple, Amazon, Bajaj Auto & Bangalore International Airport Limited. 

The company was founded in 2010 by Kuldeep Jain (IIM-A alumni and ex-Partner at McKinsey). Brookfield corporation is also one of its promoter shareholders. 

DRHP filed: 16th August 2025

BRLM: Axis Capital, J.P. Morgan India, BNP Paribas, HSBC Securities & Capital Markets, IIFL Capital Services, Nomura Financial Advisory & Securities (India), BOB Capital Markets, SBI Capital Markets

Auditor: Deloitte Haskins & Sells LLP

Delta’s View : Skip 

CleanMax is a leading player in India’s C&I renewable segment with long-tenure PPAs (22+ years), investment-grade customers (Google, Equinix, CISCO, Apple, Amazon, Bajaj Auto) and strong institutional backing (Brookfield corp). Despite meaningful growth in operational capacity and a sharp rise in technology-led contracted capacity, the business remains inherently capital intensive with modest return on capital (~6%) relative to its cost of capital (~9%). At ~7.3x P/S (TTM), the IPO appears fully priced. We would prefer to monitor execution and improvement in capital efficiency post listing before turning constructive.

One may expect listing to be flat or even negative as per current GMP -1.6%, provided the GMP sustains.

India’s Renewable Energy (RE) industry continues to build capacity with its share rising to 36% of total installed power capacity in Fiscal 2025. The industry is witnessing high capex commitments toward solar and hybrid capacity led by Adani Green Energy (~31,000 cr FY26 capex guidance), ReNew (82,000 cr announced green portfolio investments) and Tata Power. Within the C&I/open-access segment, CleanMax has committed 1,200 cr toward a 200 MW solar park in Andhra Pradesh.

CleanMax is market leader with the largest customer base (555 customers and 1,198 signed PPAs as of Sept 30, 2025) and capacity (2.80 GW operational & 2.54 GW contracted) among C&I renewable players, where tariffs are structurally higher (~50% more tariff per unit than utility segment), receivable cycles are shorter, and contract structures offer greater flexibility compared to central and state discom-led PPAs. Although operating margins increased from ~40% (FY23) to ~60% (FY25), it still remains below that of large utility-scale renewable players (~85%). More importantly, return metrics remain modest (ROCE ~6%) relative to the cost of capital (>9%) in a capital-intensive, leveraged business model. An IPO valuation at ~7.3x P/S TTM appears rich at this stage, particularly given moderate return ratios and continued dependence on debt-funded growth.

That said, the company benefits from long-tenure PPAs (avg tenure 22.7 years) and a substantial remaining tenure (>18 years), primarily with investment-grade C&I customers. Operational capacity has scaled consistently (2.18 GW as of FY25), while contracted (yet-to-be-commissioned) capacity expanded over 6x times in FY25 to 2.77 GW, driven largely by demand from technology customers (~59% of contracted capacity). Backed by Brookfield and founded by Kuldeep Jain, CleanMax has institutional sponsorship and capital access that could support continued execution. As the C&I renewable ecosystem matures and financing conditions stabilise, there may be scope for gradual improvement in capital efficiency and return metrics; however, the investment thesis at current valuations is contingent on disciplined execution and sustained improvement in returns rather than growth visibility alone.

• India’s renewable sector has outlayed massive capex, led by Adani Green Energy (~31,000 cr FY26 capex guidance), ReNew (82,000 cr announced green portfolio investments) and Tata Power (clean energy-led multi-year capex plan) outlining significant capital deployment toward solar and hybrid capacity. Within the C&I/open-access segment, CleanMax has committed 1,200 cr toward a 200 MW solar park in Andhra Pradesh.

• CleanMax’s majority of business is through long term PPA contracts with a weighted average tenure of 22.7 years and an average remaining tenure of over 18 years as of FY25. Its total customers increased by 17% in FY25 with a high quality portfolio of conventional C&I and Tech customers such as Google, Equinix, CISCO, Apple, Amazon, Bajaj Auto, Bangalore International Airport Limited, Apar Industries Limited, etc. About 96% of its customers have a credit rating of “A-” or above in FY25.

• Its contracted capacity (signed PPA / LOI with customers but yet to be operational) increased to over 6x times in FY25 to 2.77 GW. The contracts were driven by increased demand from Technology customers (~59% of contracted capacity).

• Over the last three years, the RE sector (CleanMax and large scale utility RE providers) has operated with high leverage (Debt/EBITDA ~8.5x) and weak return metrics, including Gross Fixed Asset Turnover of 0.10x–0.20x, and ROCE of ~6%. 

• CleanMax has one of the highest C&I operational capacities in India. Its EBITDA margin was 60% in FY25 compared to an EBITDA margin of 85% for utility-scale companies despite having a weighted average realised tariff of 4.28 Rs/kWh in FY25 (~50% more than utility tariffs). Its competitor, Adani Green also signed its first C&I agreement to power Google’s Data Center and strategy for increased focus on C&I and merchant opportunities. More competition could further pressurize tariff rates in future, in turn affecting margins.

• The company operates into 2 segments majorly – Renewable Energy Power Sales (PPA / EAPA contracts) and Renewable Energy services (EPC / O&M services). Its EPC / O&M services segment’s share in revenue decreased from 49% in FY23 to 25% in FY25. This segment is characterised with very low gross margin (FY25 ~6%, FY24 ~14%, FY23 ~12%) which majorly includes the cost of procuring wind turbines and solar modules to provide Capex Services. The proportion of customers willing to incur a capital expenditure and opt for Capex Services varies and can affect the overall margins for the business.

• The regulatory changes across tariffs, open access charges, banking, net metering and rooftop policies forces developers to revise models, overbuild risk buffers, and fight in courts. Recent examples include:
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• Gujarat added ₹0.05/kWh wheeling charge under its hybrid policy; Madhya Pradesh introduced a Harit Urja Tax of ₹0.10/kWh.
• In 2018, Karnataka Electricity Regulatory Commission (KERC) tried to roll back previously granted waivers on open access charges for RE projects commissioned in 2013-2018. 
• In 2021, Central govt proposed reducing rooftop solar net-metering eligibility from 1 MW to just 10 kW, but had to later restore it to 500 kW after pushback.
• Andhra Pradesh (2019) tried reopening and reducing tariffs on already-signed solar/wind PPAs, forcing developers into court.

Business

• The company provides Renewable Energy for Commercial and Industrial (C&I) applications, i.e., to Conventional C&I customers (infra, GCC, pharma, FMCG, Industrials, Manufacturers) as well as Technology customers (Data center, AI, Tech). 

• The company does not engage in the Utility segment where central government-appointed agencies or state-owned distribution companies (discoms) buy power directly from producers through a competitive bidding process. This bidding is conducted by government-appointed nodal agencies such as Solar Energy Corporation of India (SECI), NVVN, NHPC and SJVN.

• The Renewable Energy plants of the company include Solar, Wind and Hybrid plants, with over 60% operational capacity for Solar plants. These can be developed Onsite (Customer’s premises) and Offsite (CleanMax-developed RE farms) based on customer’s needs.

• Its business model primarily comprise of Energy contracting (PPA/EAPA), EPC and O&M services -

• Energy contracting (Sale of power) : It earns revenue from sale of electricity generated at RE plants to customers under long-term Power Purchase Agreements (PPAs) and Energy Attribute Purchase Agreements (EAPAs). These contracts have a weighted average term of 22 years and tariff rate is majorly fixed for the contract term.

• Engineering, Procurement and Construction (EPC) services : Fixed price contracts with the term less than a year. Revenue under EPC contracts is earned on a completion basis. 

• Operation and maintenance (O&M) services : The customers primarily avail company’s CapEx services and CleanMax is responsible for ensuring plant’s maintenance, uptime & performance. 

• Its business can be classified into 2 segments - (i) Renewable Energy Power Sales, (ii) Renewable Energy Services

• RE Power sales : Majorly sell power generated through RE plants to customers through long term PPA and EAPA contracts. These plants are owned by CleanMax.

• Onsite : Plants are located within customer premises (rooftop or ground-mounted). The power reaches directly to customers without a State or National grid because the plant is inside their owned premises. The customer doesn’t invest upfront but pays based on the tariff rate per unit.

• Offsite : Plants are located inside CleanMax owned RE farms/ lands. The power is transmitted through State Transmission Utility (STU) or Central Transmission Utility (CTU). CTU can be used to transmit Interstate also, but includes higher charges compared to STU.

• Third Party - Open Access model : In this model, the customer owns no equity in the projects. There is no investment by customers. It is costlier than the Group Captive (GC) model as it includes additional surcharges by states over usual charges.

• Group Captive model : In this model, the customers must own at least 26% equity (individually or combined) in the SPV that owns the plant. Customers must consume > 51% of total generation. Customers do it to avoid certain surcharges and maintain tariff stability.

• RE Services : It includes CapEx services and Carbon services business. It comprises EPC and O&M business.

• Capex services : Customer owns the plant and it pays CleanMax for development services, including land, evacuation infrastructure, EPC services, and power evacuation and O&M services for the lifetime of the projects. EPC contracts are fixed price, and short-term contracts that have a term of less than one year. 

• Carbon services : They advise customers and help buy, generate, or manage environmental assets including Environmental Attributes and Carbon Credits. It is a very nascent business.

• As of July 2025, It had 2.54 GW of Operational RE capacity and 2.53 GW of RE capacity contracted (yet to be executed/operational). Overall it had a total RE capacity of 10.14 GW combining Operational, Contracted, Advanced stage (Evacuation approval granted but PPA not signed yet) and Under development (Evacuation approval pending) capacities. 

Issue details

• Fresh Issue up to 1,200 cr
• Repayment of certain outstanding borrowings by the company and its subsidiaries. Est ~ 1,122 cr
• General corporate purposes

• Offer For Sale up to 1,900 cr

Promoters and Leadership

• The company was founded by Kuldeep Jain in 2010. He is presently Chairperson and Managing Director of the company. 
• He’s a chartered accountant and IIM Ahmedabad alumni. 
• He worked at McKinsey on M&A, strategy, and corporate finance across power, renewables, infrastructure, basic materials and more. He became a Partner at McKinsey. After working there for over 12 years, he started CleanMax Enviro Energy Solutions. 
• The company commissioned the first onsite solar plant for a corporate client for 100 KW in 2013. 
• Other Key Management Personnel (KMP) includes Pramod Deore – Global CEO - onsite, Amit Kumar Jain – Chief Operating Officer (Utility Scale Projects) and Nikunj Ghodawat – CFO. 
• Pramod Deore previously served as COO at Mahindra Susten, Deputy General manager at Reliance infra, before joining CleanMax in 2018.
• Amit Kumar Jain oversees the planning and implementation of all projects, and operations and maintenance programs. He previously served as Deputy General Manager at Mahindra Susten Private Limited and as an associate manager at Bharat Aluminium Company Limited.

Shareholding Pattern

Financial snapshot