Techknowgreen Solutions IPO Review: Techknowgreen Solutions is coming up with its Initial Public Offering. This IPO will be open for subscription on September 18, 2023, and closes on September 21, 2023.

This is an SME(Small and Medium-sized Enterprise) IPO and the company is going to be listed on the BSE SME platform.

In this article, we will look at Techknowgreen Solutions IPO Review, analyze its strengths and weaknesses and see what unfolds.

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Techknowgreen Solutions IPO Review: About the Company

Techknowgreen Solutions Limited was incorporated in 2001, it is an environment consulting firm that provides environment consulting services.

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The company has established itself in 3 business verticals,

Consulting: Environment Impact Assessment, ESG and Climate Change, Environmental Compliance, Environmental Due Diligence, DPR and designing, Training and sensitization, Environmental crime investigation.

Execution and Info Tech: Wastewater-execution of the sewage treatment plant, Effluent Treatment Plant, Zero Liquid Discharge; Air-developed products such as YUKA Yantra for indoor Air and virtual chimney for ambient Air purification; Solid Waste –  BIOGAS, organic composter; Remediation – Soil, decontamination, hazardous waste; Software – developed KYC (Know your compliance), Intelligent decision support system (IDSS); Applications – Developed ROCO footprint, E-catalyst and mass plantation applications for MPCB; IoT –  data communication interface for applications and software

Research – Policy and Engineering: Climate change – Carbon capture, storage and utilization (CCUS), modeling Blue Carbon, Carbon sink, Carbon and Methane, neutrality and Climate resilience; Circular economy – Wastewater trading, circular economic wetland technology; Pollution control technologies –  Advanced Oxidation process (AOP), nature-based solutions (NBS); AI and Robotics – environmental surveillance, Compliance monitoring, Big data; Policy research analysis – Cost and health benefit analysis (CBA), analysis of Alternatives, policy screening.

The company has diverse experience in handling complex projects across various industries like infrastructure, chemical, automobile, healthcare, manufacturing, real estate and national/state governments.

The company’s client base includes, government, semi-government organizations, MNCs, large companies, mid-size companies and MSMEs.

Techknowgreen Solutions IPO Review – Industry Overview

India is faced with the challenge of sustaining its rapid economic growth while dealing with the global threat of climate change. This threat emanates from accumulated greenhouse gas emissions in the atmosphere, anthropogenically generated through long-term and intensive industrial growth and high-consumption lifestyles in developed countries. 

Environmental consulting encompasses a huge scope of diverse work, from understanding regulatory requirements to developing operational strategies, to the actual implementation of the strategy. Environmental consulting helps to get the word out and raise awareness of environmental issues amongst businesses.

In 2008, India launched the National Action Plan on Climate Change (NAPCC), to address climate change. India declared the Net Zero Pledge to achieve a net zero emissions goal by 2070.

Major global sustainability consulting industry players include McKinsey & Company, KPMG Accenture, Bain & Company, EY and Deloitte. According to The Insights Partners, the global environmental consulting services market size which stands at USD 34.3 billion in 2020 is projected to reach USD 50.9 billion by 2028 at a CAGR of 5.4%.

The demand for environmental consulting services is set to increase, given countries are gradually coming together to tackle global warming and climate change.

Techknowgreen Solutions IPO Review – Financials

If we look at the financials of Techknowgreen Solutions, it has reported assets worth 11.81 Cr in FY21 and 12.37 crores in FY23, the company’s assets have hardly grown by 5% over the last 3 years.

In FY21 and FY23 the company generated revenue of 7.85 Cr and 14.86 Cr, the company’s revenue has almost doubled over the last 3 years. The rise in revenue is accompanied by rising profits, which has increased from 0.37 Cr in 2021 to 4.51 Cr in 2023.

The Company reported a Debt-to-equity ratio of 0.45 in FY23,  which indicates that the company has less debt in comparison to its equity which is a good sign.

Financial Metrics

(Source: RHP of the Company)

Competitors of Techknowgreen Solutions 

The environment consulting industry is competitive, and the company expects an increase in the competition from both established and new companies offering environmental consultancy solutions. The company also faces competition from large global consulting Firms like KPMG, E&Y, PWC and Deloitte. 

Strengths of the company

  • The company has robust execution capabilities with 20+ years of experience, which allows it to quickly understand the client’s requirements and provide quick solutions.
  • The company has diversified its services across multiple sectors thereby providing a diversified portfolio to its customers.
  • The company has a huge and diversified client base which includes, government, semi-government organizations, MNCs, large companies and MSMEs, which does not restrict the company to stick to a few customers.
  • Many countries and companies have goals to become-carbon free and reduce pollution to protect the environment. These initiatives give opportunities for the company in increasing its operations and profitability.

Weaknesses of the company

  • The company is dependent on government authorities for a substantial proportion of its business and revenue. Any decline in the budgetary allocation towards infrastructure and environmental projects and delays in payments will have an impact on the business.
  • If the company fails to anticipate, adapt, and respond effectively to the new changes in the environment/market its business and profitability might be affected.
  • The company is dependent on technology in carrying out its business activities and it forms an integral part of the business, failure of which could affect its business and profitability.
  • The company has a lot of competitors in the market and it does not have any long-term agreements with its clients, upon completion of the project the customers may switch to different companies, thereby reducing its operations.

Techknowgreen Solutions IPO Review – GMP

We will update the article once the GMP is out.

Techknowgreen Solutions IPO Review – Key IPO Information

ParticularsDetails
IPO Size₹16.72 Cr
Fresh Issue₹16.72 Cr
Opening dateSeptember 18, 2023
Closing dateSeptember 21, 2023
Face Value₹10 per share
Price₹86 per share
Lot Size1600 shares
Minimum Lots1 lot (1600 shares)
Maximum Lots1 lot (1600 shares)
Investment Amount₹1,37,600
Listing DateSeptember 29, 2023

Promoters: Mr. Ajay Ramakant Ojha and Mr. Prasad Rangrao Pawar

Book Running Lead Managers: Indorient Financial Services Limited.

Registrar to the Issue: Bigshare Services Private Limited.

Objectives of the Issue

The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Investment in research and development (“R&D”) initiatives which includes hiring of experienced R&D resources and purchase of equipment to support R&D initiatives.
  • Investment in office Premises.
  • Refurbishment of new office premises and purchase of office equipment. 
  • Expansion of execution and support service teams including hiring of resources with expertise in environmental consulting.
  • Repayment of Bank facilities 
  • General Corporate purposes

In Closing

In this article, we looked at Techknowgreen Solutions IPO Review. Through this article, we can see that the company had good and consistent growth with an increase in revenue and profits and has further potential to grow in the future provided it continues to get constant deals and budget allocation for Environmental sustainability from the government and other customer.

Techknowgreen Solutions IPO is an SME(Small and Medium-sized Enterprise) IPO which is different from the mainline IPO as the investment required, the Lot size of share is larger. The minimum investment required and the Minimum/Maximum lot size for this IPO is ₹137,600(1600 shares).

What do you think the future holds for the company, do you believe the company will sustain to provide sustainability solutions in the future? Are you applying for this IPO? Let us know in the comments below.

Written by Bharath K.S

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