Clean Max Enviro Energy bulk deal: Citigroup sells 8.3 lakh shares worth Rs 70 crore

In a bulk deal worth Rs 70 crore, Citigroup on Monday sold nearly 8.3 lakh shares of stock market debutant Clean Max Enviro Energy Solutions. The shares were sold at Rs 846.72 each, which marked a 20% discount on the issue price of Rs 1,053.Clean Max Enviro Energy Solutions made its market debut at Rs 960 on the NSE, down 9% from its issue price.

The shares were sold through Citigroup’s subsidiary Citigroup Global Markets Mauritius Private Limited. 94,717 shares were allotted through anchor allotment at the upper price band of Rs 1,053. This constituted 1.1% of the anchor quota.Clean Max Enviro Energy today ended at Rs 858, down 10.63% or Rs 102 from its listing price and down 19% from its issue price.

The IPO, which closed on February 25, was subscribed a total of 0.99 times, barely making it through on the last day. Subscription patterns showed a sharp divergence between categories.

The QIB portion, excluding anchors, was subscribed 2.99 times, reflecting institutional interest. However, the non-institutional investor segment was only subscribed 0.57 times, while private participation was extremely moderate at 0.07 times. The employee portion saw 0.11 times the subscription.

The IPO included a fresh issue of Rs 1,200 crore and an offer for sale of Rs 1,900 crore. Clean Max has been India’s largest commercial and industrial supplier of renewable energy as of March 2025, according to a Crisil report. The company has 2.54 GW of operational capacity and another 2.53 GW under construction. It supplies renewable energy under long-term PPAs to corporate customers, including technology and industrial companies.

Financially, the company has shown revenue growth, but operates in a capital-intensive sector. For FY25, total revenues stood at Rs 1,610.34 crore, while profit after tax stood at Rs 19.43 crore.

At the issue price, the stock was valued at a steep earnings multiple, with a post-issue price-to-earnings ratio of more than 300 times based on historical earnings.

The net proceeds from the fresh issue will be used primarily for repayment or prepayment of loans amounting to Rs 1,122.67 crore, with the balance being used for general corporate purposes.

Given near subscription levels and negative GMP, stock market gains seem unlikely at this stage. Market participants expect a cautious debut, with performance likely to depend more on institutional demand and broader market sentiment than on retail-driven momentum.

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