Gurugram-based Earthood Services files draft papers to garner funds via IPO

Earthood Services Ltd has filed a draft paper with markets regulator SEBI to mop up funds through an Initial Public Offering (IPO).

The Gurugram-based services company specialises in providing Environmental, Social, and Governance (ESG) advisory and assurance services to clients in India and internationally.

The company's proposed IPO comprises a fresh issue of 36 lakh equity shares and an offer for sale of up to 42 lakh equity shares by promoters. The offer also includes a subscription reservation by eligible employees, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

The company may consider raising ₹10 crore in a pre-IPO placement round. Once the placement is completed, the fresh issue size will be reduced.

Proceeds from the fresh issue to the tune of ₹30 crore will be used for funding requirements towards strengthening technological capabilities.

While its primary focus lies in ESG services, Earthood also provides advisory support for the formation and promotion of Farmer Producer Organisations (FPOs)—entities owned and managed by farmers—which form a smaller part of its operations.

Over the years, the company has executed notable projects, such as certifying the Delhi Metro Rail Corporation’s Metro Bhawan as carbon neutral and conducting environmental audits for the Indian Army’s Pulgaon military railway station, providing actionable recommendations to reduce CO2 emissions.

Over the last three fiscal years, Earthood has served more than 400 clients across 132 countries.

The company’s revenue from operations increased by 44.46% to ₹46.79 crore in fiscal 2024 from ₹32.39 crore in fiscal 2023 and profit after tax rose by 80.11% to ₹19.34 crore in fiscal 2024 from ₹10.73 crore in fiscal 2023.

Unistone Capital is the sole book-running lead manager for the issue. The equity shares are proposed to be listed on the NSE and BSE.