Gurgaon-based Earthood Services, a leading provider of carbon validation and verification services, has filed its draft red herring prospectus (DRHP) with SEBI to raise funds through an initial public offering (IPO). The offering will include a fresh issue of 36 lakh equity shares and an offer-for-sale of 42 lakh shares by promoters Dr. Kaviraj Singh and Ashok Kumar Gautam.
Currently, promoters hold 94.55% of the company shares, while the public holds the remaining 5.45%. Unistone Capital has been assigned as a sole merchant banker to undertake the IPO process.
Earthood operates in four main sectors: renewable energy, energy demand, forestry and agriculture, and waste management. Additionally, the company provides ESG advisory and assurance services to clients both in and outside of the United Kingdom. The proceeds from the fresh issue would be used to augment the technological capability of the firm, primarily for developing and commercializing its own DMRV intellectual property and solution. A portion of the money will also be utilized for general corporate purposes.
Accordingly, Earthood proposes a pre-IPO placement of up to Rs 10 crore before filing with Registrar of Companies, which shall accordingly reduce the size of fresh issue.
In FY24, Earthood reported a net profit of Rs 19.3 crore, up 80.1% from Rs 10.7 crore in FY23. Revenue for the corresponding period was up 44.5% at Rs 46.8 crore. For the first half of FY25, the company recorded a profit of Rs 5.4 crore on revenue of Rs 21.9 crore. Earthood is a differentiated player in the Indian market, with no directly comparable peers in the listed space. The IPO is a major milestone in the growth and innovation journey of the company.
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Source: Moneycontrol
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