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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.
Detail | Information |
---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 36,00,000 Equity Shares of face value ₹10 |
Offer for Sale | Up to 42,00,000 Equity Shares of face value ₹10 |
EPS (in ₹) for FY 24 | 8.11 |
Investor Category | Shares Offered |
---|---|
QIBs | Not less than 75% of the net issue |
Non-institutional Investors (NIIs) | Not more than 15% of the net issue |
Retail-individual Investors (RIIs) | Not more than 10% of the net offer |
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.
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.
Organic lead generation strategy
○ Registered with major global standards like Verra, Gold Standard, and GCC.
○ Enhanced visibility and credibility while minimising marketing costs.
○ Achieved high client conversion rates:
■ 83.69% for six months ending September 30, 2024.
■ 83.33% for Fiscal 2024.
Diversified client base
○ Serves industries like energy, manufacturing, and public sectors.
○ Clients in over 132 countries in Fiscal 2024.
Commitment to Quality Assurance
○ Operates a robust Quality Management System (QMS).
○ Implements rigorous internal reviews and external validations.
○ Focuses on continuous improvement processes.
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.
Particulars (in Rs. crores)
Particulars (in Rs. crores)
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.
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.
Parameter | FY24 | FY23 | FY22 |
---|---|---|---|
Total Income (in ₹ crores) | 47.17 | 32.54 | 10.12 |
Profit Before Tax (in ₹ crores) | 26.16 | 13.47 | 1.52 |
Profit After Tax (in ₹ crores) | 19.33 | 10.73 | 1.28 |
EPS | 8.11 | 4.50 | 0.54 |
EBITDA (in ₹ crores) | 27.29 | 13.94 | 2.01 |
Parameters | FY24 | FY23 | FY22 |
---|---|---|---|
Profit Before Tax (in ₹ crores) | 26.16 | 13.47 | 1.52 |
Net Cash from (used in) Operating Activities (in ₹ crores) | 14.96 | 7.75 | 1.33 |
Net Cash from (used in) Investing Activities (in ₹ crores) | (11.54) | (4.62) | 0.87 |
Net Cash from (used in) Financing Activities (in ₹ crores) | (2.11) | 0.25 | (0.065) |
Net Cash and Cash Equivalents (in ₹ crores) | 1.29 | 3.38 | 2.14 |
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
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:
Then click 'Submit'. Your Earthood Services IPO bid and allotment details will be displayed.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Earthood Services is launching an IPO with 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. The offer for sale consists of up to 42,00,000 equity shares with the same face value of ₹10 each.
Yes, Earthood Services Ltd is expected to come up with its IPO soon.
Dr. Kaviraj Singh is the chairman of Earthood Services.
The company hasn’t given any information on the lot size yet.
You may read more about Earthood Services and its IPO from the company’s draft red herring prospectus (DRHP) here