Gurgaon-based Earthood Services has filed its offer prospectus with the Securities and Exchange Board of India (SEBI), seeking to raise funds via an Initial Public Offering (IPO). The IPO includes a fresh issue of 36 lakh equity shares and an offer-for-sale (OFS) of 42 lakh shares by promoters Dr Kaviraj Singh and Ashok Kumar Gautam.

About Earthood Services

Earthood Services is a recognized leader in carbon validation and verification services, coupled with Environmental, Social, and Governance (ESG) advisory and assurance solutions. The company serves clients both domestically and internationally across sectors such as renewable energy, forestry, agriculture, and waste management.

Established in Gurgaon, the firm holds global accreditations, including:

• Designated Operational Entity (DOE) accreditation from the United Nations Framework Convention on Climate Change (UNFCCC) since Fiscal 2014.
• Validation and Verification Body (VVB) certifications from the Global Accreditation Bureau (GAB) and the American National Accreditation Board (ANAB) in Fiscal 2023 and 2024, respectively.

Additionally, Earthood Services is listed on 15 major global registries, such as VERRA, Gold Standard (GS), and Global Carbon Council (GCC), empowering it to certify carbon offset projects globally.

Earthood Services IPO Details and Structure

The proposed IPO structure includes:

• Fresh Issue: 36 lakh equity shares.
• Offer-for-Sale (OFS): 42 lakh equity shares by promoters.

The company also plans to raise INR 10 crore through a pre-IPO placement, which may proportionately reduce the fresh issue size.

IPO Reservations:

• Qualified Institutional Buyers (QIB): 75% of the shares.
• Non-Institutional Investors (NII): 15% of the shares.
• Retail Individual Investors: 10% of the shares.

Unistone Capital is the sole book-running lead manager, and Link Intime will serve as the issue’s registrar. The shares are set to list on the NSE and BSE.

Earthood Services IPO – Fund Utilization Plans

Proceeds from the IPO will focus on:

• INR 30 crore for enhancing technological capabilities, including the development and commercialization of proprietary DMRV (Digital Monitoring, Reporting, and Verification) solutions.
• Funding general corporate purposes to support expansion and operations.

Financial Performance

Earthood Services has shown substantial financial growth:

• Revenue Growth: A 44.5% rise to INR 46.8 crore in Fiscal 2024, up from INR 32.4 crore in Fiscal 2023.
• Profit Growth: An 80.1% increase to INR 19.3 crore in Fiscal 2024 from INR 10.7 crore the previous year.
• H1 FY25 Performance: Revenue at INR 21.9 crore, with a profit of INR 5.4 crore.

Market Focus and Global Reach

Operating primarily in carbon markets, Earthood Services earns its revenue through:

• Voluntary Carbon Market: Representing 96.56% of revenue in Fiscal 2024, it allows businesses to offset emissions by purchasing credits from verified projects.
• Regulatory Carbon Market: Contributing 3.44%, this segment focuses on compliance-driven frameworks like cap-and-trade systems.

Having served over 400 clients across 132 countries, Earthood Services has executed notable projects, including:

Sectoral Expertise and Services

Earthood Services offers validation and verification services across key sectors:

• Renewable Energy: Solar, hydro, and wind energy projects.
• Energy Demand: Clean energy solutions, such as cookstoves and water purification systems.
• Forestry and Agriculture: Afforestation, reforestation, and agricultural emission reductions.
• Waste Management: Landfill gas, biogas, biomass energy, and electric vehicle networks.

Industry Outlook and Growth Potential

The growing emphasis on Net-Zero emissions has intensified demand for carbon credits and high-quality certifications. Carbon markets, both voluntary and regulatory, are set to play a pivotal role in achieving global decarbonization goals.

Leveraging its global accreditations and presence on major registries, Earthood Services is well-positioned to address this rising demand and support sustainable development globally.

Conclusion

With strong financial performance, a global presence, and a focus on ESG and carbon validation, Earthood Services’ IPO is expected to attract significant investor interest. Proceeds dedicated to technological advancements, including proprietary DMRV solutions, underscore the company’s commitment to innovation and sustainability.

Investors can expect further updates as SEBI reviews the DRHP and finalizes the IPO timeline. This marks a significant milestone for Earthood Services as it continues to shape the future of carbon management and sustainability solutions globally.  For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.