Clean Max Lists on Stock Exchange with Partially Subscribed Initial Public Offering

Clean Max Enviro Energy Solution to List on March 2 Despite Issue Falling Short of Full Subscription

Clean Max Enviro Energy Solution, a firm in the renewable energy sector, will be listed on the NSE and BSE on March 2, marking the first issue in four years to hit the markets without achieving 100% subscription.

Key Statistics

• 14 companies since 2007 have listed on the secondary markets despite their IPOs not being fully subscribed.
• Star Health and Allied Insurance was the last such instance in December 2021, with its maiden public issue subscribed 0.99 times.
• Clean Max Enviro Energy Solution's IPO was subscribed 99%, with the QIB portion oversubscribed at 2.99 times, non-institutional investor portion at 57%, and retail portion at 7%.

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Historical Context

Since 2007, 14 companies have made their debut on the exchanges despite not achieving full subscription. These companies include Hindustan Aeronautics Limited and ICICI Securities. Subscription levels in these cases ranged from as low as 0.76 times to 0.99 times.

Performance of IPOs

Despite listing on the exchanges, the performance of these issues has been largely underwhelming. Most issues have seen negative listing day returns, and the one-year fall from the offer price has been extremely steep. However, Hindustan Aeronautics has generated strong long-term gains, trading over 500% above its offer price.

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Book Running Lead Managers

Clean Max Enviro Energy Solution hired eight book running lead managers (BRLMs) to handle the issue, including Axis Capital, JP Morgan India, BNP Paribas, HSBC Securities & Capital Markets, IIFL Capital Services, Nomura Financial Advisory & Securities, BOB Capital Markets, and SBI Capital Markets.

Listing Expectations

The firm's grey market premium indicates a tepid listing. Clean Max Enviro Energy Solution will list on the NSE and BSE later today.