Clean Max Enviro Energy Solutions Limited has announced that it will exercise its right of early redemption for non convertible debentures worth ₹499 crore.

The company informed stock exchanges that it will redeem 4,990 senior redeemable listed rated zero coupon non convertible debentures, each having a face value of ₹10 lakh.

The total value of these debentures is ₹499 crore, and the early redemption date has been fixed as April 2, 2026.

The decision has been taken under the provisions of SEBI Listing Obligations and Disclosure Requirements Regulations and SEBI Issue and Listing of Non Convertible Securities Regulations.

Record Date for Debenture Redemption

The company has fixed March 18, 2026 as the record date for determining eligible debenture holders who will receive the redemption payment.

The full principal amount of ₹4,99,00,00,000 will be repaid along with accrued interest on the redemption date.

The debentures will undergo full redemption, meaning the entire outstanding amount will be repaid and the instruments will cease to exist after the payment.

Major Investors in the Debenture Issue

The debenture holders include several large global and institutional investors.

Key investors involved in the debenture issue include:

• Allianz Global Investors GMBH through multiple investment funds
• Nomura Capital India Private Limited
• Nomura Investments Singapore
• ILFS Infrastructure Debt Fund Series 2B and Series 2C

These investors had subscribed to the debentures through private placement arrangements under the company’s debenture trust structure.

The Debenture Trustee for the issue is Vistra ITCL India Limited, which acts on behalf of the debenture holders.

Early Redemption Amount for Investors

Each debenture holder will receive the principal amount along with accrued interest up to the redemption date.

Some of the major redemption payouts include:

• Allianz VGL Fund – approximately ₹194.73 crore including interest
• Nomura Capital India – approximately ₹100.06 crore including interest
• Nomura Investments Singapore – approximately ₹75.05 crore including interest
• ILFS Infrastructure Debt Fund Series 2B – approximately ₹50.03 crore including interest
• ILFS Infrastructure Debt Fund Series 2C – approximately ₹25.01 crore including interest

The payments include accrued interest calculated up to April 2, 2026, while the interest until March 31, 2026 will be paid in the regular course.

Funding Through IPO Proceeds

The company has stated that the repayment will be funded using proceeds raised from its initial public offering.

CleanMax had recently raised capital through its IPO and plans to use a portion of the funds to reduce debt and strengthen its balance sheet.

Using IPO proceeds for debt repayment is a common strategy among companies as it helps:

• Reduce interest burden
• Improve financial stability
• Strengthen credit profile
• Increase investor confidence

This move is expected to improve CleanMax’s overall capital structure.

Facility Agreement with Tata Capital

Apart from the debenture redemption, the company has also indicated plans to repay obligations under a facility agreement with Tata Capital Limited.

The repayment to Tata Capital is expected to be ₹400 crore, which will be completed earlier on March 16, 2026.

The company has requested debenture trustees for:

• Waiver of the standard 30 day prepayment notice requirement
• Approval for pari passu repayment of lenders
• Confirmation that early repayment will not be treated as default under the financing documents

These approvals will allow the company to complete its debt repayment smoothly after the IPO.

CleanMax Renewable Energy Business

Clean Max Enviro Energy Solutions Limited operates in the renewable energy sector, focusing primarily on providing clean power solutions to commercial and industrial consumers.

The company develops and operates:

• Solar power plants
• Wind energy projects
• Hybrid renewable energy projects
• Open access renewable energy solutions

CleanMax supplies green energy to large corporate clients through long term power purchase agreements and captive power arrangements.

The company has built a strong presence in India’s growing renewable energy market.

Importance of Debt Reduction for Renewable Energy Companies

Renewable energy companies often require large upfront capital investment for project development.

Solar and wind power plants involve significant costs related to:

• Land acquisition
• Equipment installation
• Grid connectivity infrastructure
• Project financing

As a result, many renewable energy companies initially rely on debt financing to build projects.

Once projects become operational and companies raise equity through IPOs, they often reduce their debt levels to improve financial performance.

CleanMax’s decision to redeem debentures early reflects this financial restructuring strategy.

Impact on Financial Structure

Early redemption of ₹499 crore worth of debentures will help CleanMax:

• Lower its overall debt obligations
• Reduce interest expenses
• Improve debt to equity ratio
• Strengthen its balance sheet

These improvements are important for companies operating in capital intensive sectors like renewable energy.

A stronger balance sheet also allows companies to raise additional funds for future expansion projects.

Renewable Energy Sector Growth

India’s renewable energy sector is expanding rapidly as the country focuses on increasing the share of clean energy in its power mix.

The government has set ambitious targets to increase renewable energy capacity in the coming years.

Key growth drivers include:

• Increasing demand for green electricity
• Corporate sustainability commitments
• Government policies supporting renewable energy
• Declining cost of solar and wind power technology

Companies like CleanMax play a key role in helping businesses transition toward clean and sustainable energy sources.

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