Earthood Services refiles DRHP with Sebi to launch its IPO; check key details

Earthood Services, a company headquartered in Gurgaon, has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to proceed with an Initial Public Offering (IPO). The IPO, assigned a face value of Rs 10 per share, is entirely structured as an offer for sale involving up to 62.90 lakh equity shares by promoter selling shareholders, including a reservation for eligible employees at a discounted rate.

The offer for sale is divided into two parts, with Dr. Kaviraj Singh selling up to 42.90 lakh equity shares and Ashok Kumar Gautam offering up to 20 lakh equity shares. The book-building process will allocate at least 75% of the net offer to qualified institutional buyers, while non-institutional and retail individual bidders will receive not more than 15% and 10% of the net offer, respectively. The process includes a special reservation with a discount for eligible employees.

Established in 2012, Earthood Services specializes in carbon validation and verification services and Environmental, Social, and Governance (ESG) advisory and assurance for clients in India and abroad. Promoted by Dr. Kaviraj Singh and Mr. Ashok Kumar Gautam, the company has over 17 and 23 years of experience in energy and climate change sectors, offering lifecycle assessments and sustainability consulting.

Earthood's strategic focus is on the growing demand for ESG services, driven by investors seeking verified ESG data and regulatory requirements like the EU's Corporate Sustainability Reporting Directive. The company has successfully executed projects such as certifying the Delhi Metro Rail Corporation's Metro Bhawan as carbon neutral and conducting environmental audits for the Indian Army.

Financially, Earthood has shown significant growth, with revenues increasing by 44.46% from ₹32.39 crore in Fiscal 2023 to ₹46.79 crore in Fiscal 2024. This growth is mainly due to the sales of carbon verification and validation services. The number of projects undertaken rose from 169 in Fiscal 2023 to 219 in Fiscal 2024, with profit after tax increasing by 80.11% from ₹10.73 crore to ₹19.34 crore over the same period.

The company's operational performance for the nine months ending December 31, 2024, included a revenue from operations of Rs 33.67 crore and a profit after tax of Rs 8.14 crore. Earthood maintains a global presence with offices in the UK, Russia, Turkey, and the UAE, and has served over 400 clients in 132 countries.

Unistone Capital Private Limited is the sole book-running lead manager for the IPO, while Link Intime India Private Limited serves as the registrar. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

Earthood continues to enhance its global capabilities with subsidiaries in the UK, Turkey, Russia, and the UAE, one of which is in the process of obtaining accreditation from the United Kingdom Accreditation System (UKAS), increasing its credibility in carbon validation and verification services.