Clean Max Enviro Energy Solutions' IPO Sees Weak Demand on Second Day, Fails to Meet Subscription Target

Clean Max Enviro Energy Solutions IPO Update

Key Highlights:

• The initial public offering (IPO) of Clean Max Enviro Energy Solutions saw a weak response from investors, with the issue remaining partially booked as of February 24.
• The Qualified Institutional Buyer (QIB) quota was fully subscribed at 1.21 times, while the Non-Institutional Investor (NII) quota was subscribed at 41%.
• The Retail and Employee quotas garnered bids at 4% and 5%, respectively.

Subscription Status:

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• As of 5 pm on February 24, the overall subscription stood at 45%, with bids for 97.59 lakh shares compared to the offered 2,18,23,329 shares.
• The Grey Market Premium (GMP) for the IPO has declined to ₹0 from ₹1 earlier, indicating a listing price of ₹1,053, same as the issue price.

IPO Details:

• The ₹3,100 crore IPO will remain open for subscription until February 25.
• The basis of allotment is scheduled to be finalized on February 26, with the shares expected to list on March 2.
• The issue comprises a fresh issue of shares worth ₹1,200 crore along with an offer for sale (OFS) aggregating ₹1,900 crore.

Proceeds Utilization:

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• Proceeds from the fresh issue will be primarily utilized for debt reduction, with ₹1,125 crore earmarked for loan repayment.
• The balance amount will be deployed towards general corporate purposes.

Recommendation:

• Gaurav Garg, Research Analyst at Lemonn Markets Desk, recommends subscribing to the IPO for long-term investors, supported by strong sector tailwinds and sustained structural demand.