Shares of Clean Max Enviro Energy Solutions Ltd. plunged as much as 19% on their Mumbai debut Monday, marking a disappointing start for the Brookfield Corp.-backed renewable energy provider. The stock fell to 856.90 rupees from an IPO price of 1,053 rupees, reflecting weak investor sentiment in the sector.

Clean Max's 31 billion rupee ($341 million) IPO closed at just 94% subscription, with retail investors showing particularly tepid interest at only 7% subscription. This represents the weakest response for a mainboard IPO in over seven years. The poor debut comes amid broader challenges facing India's renewable energy sector, including export slowdowns and transmission infrastructure delays.

Several renewable energy companies that went public last year are now trading below their offer prices, with Vikram Solar Ltd. down nearly 49% and Solarworld Energy Solutions Ltd. falling about 46%. The sector faces additional headwinds from a 126% tariff on Indian solar imports imposed by the Trump administration last week. With half a dozen renewable energy companies planning IPOs, Clean Max's lackluster performance may signal broader caution among investors.