In the ongoing wave of IPOs, Techknowgreen Solutions Limited is all ready to hit the capital market and raise funds of up to INR 16.72 crores. The company has hands-on experience of decades in offering environmental IT services to diverse industries like manufacturing, chemical, automobile, infrastructure, healthcare, and many more. The initial public offering of the company is entirely a Fresh Issue and is priced at INR 86 per share where up to 1,944,000 shares will be offered for subscription. Through Techknowgreen Solutions IPO Review, we strive to emphasize all the essential prospects related to the company, its IPO, and its potential as a suitable investment.
Techknowgreen Solutions IPO Subscription Period and Issue Structure
Techknowgreen Solutions IPO is to open in a few days from 18th September 2023 and will remain open for subscription till 21st September 2023. The public offer is in the form of a fixed price issue at Rs. 86 per share. The shareholding of Promoters & Promoter Group stands at 89.02% and this figure is scheduled to come down to 65.58% after the IPO.
Further, post Market Maker allotment, the Net offer will be made to Non-institutional bidders and Retail Individual Investors in the same proportion i.e., 50% for each investor category.
Techknowgreen Solutions IPO Analysis: Business Overview
The business started as a partnership firm in 2001 and was converted into a company Techknowgreen Solutions Limited commenced its operations in 2001. The company is headquartered in Pune and also functions through its branch offices located in Mumbai and Delhi. The company’s environmental consulting services are primarily distributable in the following three verticals – Consulting, Technology, and Research. Techknowgreen is one of the first companies in India to extend environmental IT solutions to its customers. Its multi-verse portfolio consists of ingenious software applications and varied compliance solutions.
Techknowgreen Solutions has been offering services as an environmental IT Services provider for the past 20+ years in the industry. Their domain is divided into three categories i.e., Consulting – Regulatory and Sustainability, Technology – Execution and Infotech, and Research – Policy and Engineering.
- In Consulting, its services include Environment Impact Assessment, ESG and Climate Change, Environmental Compliance, Environmental Due Diligence, and so on.
- In the technology domain, the company caters to Wastewater, Air, Solid Waste, Remediation, and Information Technology domains.
- The research vertical of the company revolves around Climate change, Circular economy, Pollution control technologies, AI and Robotics, and Policy research analysis.
Its operations are of great interest to the governing bodies as well which are concerned with sustainability and sustainable development.
Techknowgreen Solutions IPO Analysis: Competitive Strengths
Techknowgreen Solutions is driven towards enhancing its capabilities and strengths by expanding geographically, developing state-of-the-art R&D systems, emphasizing long-term business development, and focusing on large projects. This has led to a constant growth in its annual profits over the years too. The company’s revenue was INR 7.85 crore in FY 2021, which rose to INR 14.86 crore for the financial year ending March 2023. Other KPIs during the period also demonstrated an upward trend for the company which we will discuss in the financial performance segment below.
Techknowgreen Solutions IPO Analysis: Industrial Contributions and Major Accomplishments
The breakthrough of Techknowgreen Solutions as an environmental consulting company has given much-needed attention to environmental concerns and necessary developments. Today, the company is serving diverse segments like national/state governments, chemical, manufacturing, healthcare, infrastructure, automobile, and real estate. The company’s clients include MNCs, government & semi-government organizations, and Mid-size and MSME companies.
In its journey of more than 20 years, the company has completed over 2,500 projects within its range of compliances, research and implementation of numerous environmental technology solutions, and complex consulting projects. Techknowgreen Solutions has completed and marked this achievement with its team of 70+ experts based at multiple locations.
Techknowgreen Solutions IPO Review: Financial Performance
Techknowgreen Solutions has successfully improved its financial performance over the past few financial years. The company’s total income grew to a considerable extent from INR 7.81 crore in FY 2021 to INR 14.84 crore in the FY 2023.
The profit after tax marked an even more remarkable height of INR 4.51 crore in March 2023 for the company.
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 7.81 | 9.87 | 14.84 |
| Expenses | 7.34 | 8.48 | 8.62 |
| Net income | 0.37 | 1.08 | 4.51 |
One of the significant points of consideration from investors’ standpoint is the EPS (Earning per Share). The company delivered a positive EPS of INR 8.86 in the preceding financial year.
Techknowgreen Solutions IPO Review: Should you Invest?
Some of the key factors that make an IPO investment prospective are – its history and background, competitive strength in the market, financial performance, execution of projects, and management.
In the case of Techknowgreen Solutions, the company has an operating history of more than 2 decades in the industry. While completing over 2,500 projects speaks for its operational excellence, it is also noteworthy that the company operates in a segment which is likely to expand significantly in the coming years. As such, its growth prospects are immense given the recent spiked attention of society towards compliance and governance.
At the same time, the company’s financial position is strengthening with each year’s operations as we observed above. The total income and profits have increased vastly in recent years. Given its strong fundamentals, the IPO is priced very attractively. The price of INR 86 per share translates to a pre-offer P/E ratio of 9.71. Since the company operates in a niche, there are no listed peers but its low P/E ratio, combined with RONW of 71% and EBITDA margin of 44% is reassuring.
Management quality is often among the most important criterion in our reviews and Techknowgreen Solutions IPO Review is no different. The company is promoted by Mr. Ajay Ramakant Ojha and Mr. Prasad Rangrao Pawar who have long-term experience in fields like environmental consulting, technology, and management.
As we put all the pieces together in Techknowgreen Solutions IPO Review and align them in a conclusion, the IPO seems fair for the company as well as for those looking to invest. It also helps to know that the offer is commanding a premium in the IPO grey market. The company has a positive impact on society as a whole, its operations from distinct angles too seem fruitful.
