Clean Max Enviro Energy Solutions Ltd., a renewable energy company backed by Brookfield Corp., is preparing to launch its initial public offering in February with a reduced deal size, according to people familiar with the matter.

The scaled-back offering reflects a cautious approach from investors and the company amid a challenging market for new listings. Clean Max's pivot suggests a focus on securing a successful debut rather than maximizing initial capital, a common strategy when market conditions are volatile.

Industry watchers will monitor the IPO's pricing and investor appetite for Indian renewables. A successful offering could pave the way for other green energy firms, while a tepid response might signal broader market headwinds for the sector in the coming months.