Earthood Services Ltd IPO

About Earthood Services Limited IPO

Earthood Services Limited is launching an IPO comprising a fresh issue and an offer for sale. The fresh issue includes up to 36,00,000 equity shares with a face value of ₹10 each, aggregating to an undisclosed amount in lakhs. The offer for sale consists of up to 42,00,000 equity shares with the same face value of ₹10 each, also aggregating to an unspecified amount in lakhs. The total offer size amounts to up to 78,00,000 equity shares of ₹10 each, with the aggregate value yet to be disclosed.

Objectives of Earthood Services Limited IPO

• To allow the promoter selling shareholders to sell up to 42,00,000 Equity Shares of face value of ₹ 10 each held by them.
• For strengthening company’s technological capabilities through the development, ownership and commercialization of proprietary DMRV (Digital Monitoring, Reporting and Verification) intellectual property and solutions.
• General corporate purposes

Industry Outlook

The carbon market facilitates trading of greenhouse gas emission credits, enabling entities to buy and sell carbon credits to offset emissions and meet net-zero targets. Driven by growing environmental pressures, regulations incentivise investment in low-carbon technologies, with demand for high-quality, verified credits rising. The voluntary carbon credit market, valued at USD 163.6 million in 2023, dominates the global carbon offset market, projected to grow at a 25.8% CAGR from 2024 to 2030.

Initiatives like the Voluntary Carbon Markets Integrity Initiative (VCMI) and frameworks such as the EU's Carbon Removal Certification and U.S. policy alignments aim to enhance market integrity through standardised verification processes. The Paris Agreement’s Article 6.4 introduces a mechanism to improve upon the Kyoto Protocol’s Clean Development Mechanism (CDM), with operational rules under development.

Company Information

Earthood Services Limited is a globally recognised company specialising in carbon validation and verification services, as well as Environmental, Social, and Governance (ESG) advisory and assurance services for clients in India and abroad. The company has been ranked as the "Best Verification Company" in the Voluntary Carbon Market Rankings for 2023 and 2024 by Environmental Finance.

Accredited by the UNFCCC since Fiscal 2014, and by GAB and ANAB as a Validation and Verification Body (VVB) since Fiscal 2023 and 2024 respectively, Earthood provides certification for carbon offset projects across 15 major registries, including VERRA, Gold Standard, and GCC. Committed to climate action, the company achieved carbon neutrality for Scopes 1, 2, and 3 emissions by September 2024.

Risks of Earthood Services Limited IPO

• Revenue dependency on carbon verification services: Earthood Services Limited heavily relies on its carbon verification and validation business in the voluntary carbon market, which accounted for 97.76% of its revenue for the six months ending September 30, 2024. Any downturn in the carbon offset industry or reduced focus on carbon neutrality could adversely affect its business.

• Regulatory uncertainty: The transition from the Clean Development Mechanism (CDM) to Article 6.4 under the Paris Agreement and delays in implementing regulatory frameworks pose risks to revenue generation and market stability.

• Policy shifts and global commitments: Changes or reversals in global climate policies, such as withdrawal from international agreements, could reduce demand for carbon credits, disrupt carbon pricing mechanisms, and undermine confidence in climate solutions.

IPO Registrar and Book Running Lead Manager

• Registrar: Link Intime India Private Limited
• Book Running Lead Managers: Unistone Capital Private Limited

Business Model

Earthood Services Limited operates a specialised business model focused on carbon validation and verification services across four key sectors: renewable energy, energy demand, forestry, and agriculture, and waste management. The company provides validation and verification for renewable energy projects like solar, wind, and hydro power, ensuring compliance with technical, financial, environmental, and social standards. It also supports energy demand projects by verifying clean energy product distribution, such as improved cookstoves, water purification systems, and solar lighting.

In forestry and agriculture, Earthood validates projects involving afforestation, reforestation, agricultural land management, and emissions reduction from deforestation. Additionally, the company works on waste management projects related to landfill gas, biogas, biomass-based energy generation, and innovative solutions like electric vehicle charging networks and concrete recycling. This diversified sectoral coverage enables Earthood to address various aspects of climate action while maintaining a robust revenue stream.

Company Growth Trajectory

Earthood Services Limited has demonstrated substantial growth in EBITDA and revenue from operations over the past three fiscal years. Revenue from operations increased from ₹10.11 crores in FY22 to ₹32.39 crores in FY23, and further to ₹46.79 crores in FY24, reflecting consistent upward momentum. Similarly, EBITDA surged from ₹20.00 crores in FY22 to ₹13.94 crores in FY23, and reached ₹26.91 crores in FY24, showcasing the company's strong operational efficiency and profitability growth.

How to Check Allotment Status of Earthood Services Limited IPO?

1. Visit the Registrar's Website

To check the IPO allotment status for Earthood Services Limited IPO, visit the official website of Link Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the 'Submit' button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps

• Select 'Equity' from the dropdown menu
• Choose 'Earthood Services Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'

Your Earthood Services IPO allotment status will be displayed.

3. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Earthood Services IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Earthood Services IPO bid and allotment details will be displayed.

How to Apply for Earthood Services Limited IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.