Gurgaon-based Earthood Services has withdrawn its draft red herring prospectus (DRHP) for an initial public offering, according to the latest processing status update published by the Securities and Exchange Board of India (SEBI) on February 27. The company had originally filed its IPO papers in June 2025.
The proposed public issue was entirely an offer-for-sale (OFS) of 62.9 lakh equity shares, with no fresh issue component. The selling shareholders included Kaviraj Singh and Ashok Kumar Gautam.
Earthood Services provides carbon validation and verification services, along with environmental, social and governance (ESG) advisory and assurance solutions across India and international markets.
It was the first company from the environmental attributes certification segment to tap the Indian capital markets and currently has no listed peer domestically. In its draft papers, the company had cited global certification major Bureau Veritas as a comparable international player.
According to a CRISIL report referenced in the draft document, companies globally are under rising pressure to reduce greenhouse gas emissions and commit to net-zero targets. This has led to higher investments in emission offsetting projects and increased demand for independently verified, high-quality carbon credits.
Carbon credits are generated through mitigation activities that reduce greenhouse gas (GHG) emissions beyond a defined baseline. They may also represent emission removals, such as carbon sequestration through afforestation or direct air capture and storage. Each carbon credit corresponds to one tonne of carbon dioxide equivalent (CO2e) reduced or removed.
Unistone Capital was appointed as the sole merchant banker for the proposed IPO.
