The list of upcoming IPOs continues to grow – This time a renewable energy firm, Clean Max Enviro Energy, is set to hit D-Street soon.

The Rs 3,100 crore issue is set to open next week for subscription.

What made the company go public?

Clean Max Enviro’s founder and Managing Director, Kuldeep Jain, in an interview with The Financial Express, has said that the company decided to go public considering the growth opportunities,  “there is tremendous growth ………Therefore, we wanted to do an IPO where we believe we have the best possible chance for incoming shareholders to create value.”

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Clean Max Enviro IPO: Key details 

Here are 7 must-know details about the offer, so that you don’t miss out on anything.

  1. Clean Max Enviro IPO: Offer size and price band

Clean Max’s offer is a book-built issue worth Rs 3,100 crore. Of the total float, Rs 1,200 crore is a fresh issue aggregating to 1.14 crore shares, while the remaining Rs 1,900 crore is an offer for sale of 1.80 crore shares.

The company has fixed the price band at Rs 1,000-1,053 per share, with each share having a face value of Rs 1.

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  1. Clean Max Enviro IPO: Subscription timeline

The company will open its IPO to the public on Monday, February 23. The issue will remain open for bidding for three days, and will close on Wednesday, February 25. Anchor bidding will take place this Friday on February 20.

After bidding, shares are expected to be allotted to eligible shareholders by February 26 and credited to their demat accounts by February 27.

The final allotment of shares is expected to be completed by February 26. The refund process is also likely to be initiated on the same day. 

Eligible shareholders can expect the shares to be credited to their demat accounts by February 27.

The renewable energy firm is likely to be listed on the stock exchanges by March 2.

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  1. Clean Max Enviro IPO: Lead Managers and Registrar

Eight firms are handling the company’s IPO. These include Axis Capital, JP Morgan India, BNP Paribas, HSBC Securities and Capital Markets, IIFL Capital Services, Nomura Financial Advisory, BOB Capital Markets, and SBI Capital Markets. MUFG Intime India is the registrar to the issue.

  1. Clean Max Enviro IPO: Bid Size

At the upper end of the price band, the minimum bid for retail investors is one lot, which equals 14 shares and translates into an investment of Rs 14,742.

For small NIIs (non-institutional investors), the lot size stands at 14 lots, amounting to Rs 2.06 lakh, while big NIIs can apply for 68 lots, which amounts to Rs 10.02 lakh.

  1. Clean Max Enviro IPO: GMP

As per the latest update, the shares of the company are trading at Rs 1,062 in grey markets, implying a GMP of Rs 9 over the upper end of the price band. However, it is important to note that GMP is an unofficial metric to measure the listing price of shares and fluctuates based on market mood and conditions.

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  1. Clean Max Enviro IPO: Utilisation of Funds

The company will direct the net proceeds raised from the fresh issue majorly towards the repayment of its borrowings. Of the total Rs 1,200 crore raised via the fresh issue, around Rs 1,122 crore would be used for the repayment of the borrowings of the company and its subsidiaries.

This essentially means 93% of the raised capital would be diverted towards repayments or prepayments. The remaining capital would be utilised for general corporate purposes, as per the company’s RHP.

  1. Clean Max Enviro IPO: Key Risk

The company is exposed to the risk of financial uncertainty as it incurred losses in FY24 and FY23. Some of its subsidiaries incurred losses in H1FY25, which may impact the company’s financial position.

Heavy reliance on revenue from the top ten customers, risk of termination of power purchase agreements, failure of debt repayment, inability to develop new projects, failure to secure suitable land parcels, and related-party transactions are also some of the key risks to monitor.