i. Techknowgreen Solutions is environmental consulting company with 20+ years of experience, headquartered in Pune, India. Their key offerings include Consulting – Regulatory | Sustainability, Technology – Execution | Info Tech and Research – Policy | Engineering. They are one of the first companies in India providing environmental IT solutions through cutting-edge software applications and compliance solutions. They have diverse experience in handling complex projects across various industries like infrastructure, chemical, automobile, healthcare, manufacturing, real estate and national/state governments. Their client base includes government, semi government organization, MNCs, large companies, mid-size companies and MSMEs.
ii. The Company was originally formed as a partnership firm pursuant to deed of partnership dated April 05, 2001 in the name and style of “Techno Green Environmental Solutions”, thereafter the firm got registered under the Partnership Act, 1932 (“Partnership Act”) having Firm Registration Number BA-81287 in the name and style of “Technogreen Environmental Solutions” dated September 17, 2001. The firm was thereafter converted from Partnership Firm to a Public Limited Company under Part I of Chapter XXI of the Companies Act, 2013 with the name and style of “Techknowgreen Solutions Limited” and received a Certificate of Incorporation from the Registrar of Companies, Central Registration Centre dated January 02, 2023.
iii. The Company is promoted by Ajay Ramakant Ojha and Prasad Rangrao Pawar who are technocrats in environmental consulting, technology & management field with a vision to empower clients by ensuring sustainability and profitability can go hand in hand and achieving double bottom line.
i. Robust Execution Capabilities
ii. Across Multiple Sectors
iii. Many Innovative Executions
Objects of the Techknowgreen Solutions Limited IPO:
The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
i. 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.
ii. Investment in office Premises.
iii. Refurbishment of new office premises and purchase of office equipment.
iv. Expansion of the execution and support service teams including hiring of resources with expertise in environmental consulting.
v. Repayment of Bank facilities.
vi. General Corporate purposes.
Techknowgreen Solutions Limited IPO Details:
||Sep 18 2023
||Sep 21 2023
|| ₹ 10 Per Equity Share
||Fixed Price Issue IPO
|| ₹ 86 Per Equity Share
||Sep 29 2023
Recommendation on Techknowgreen Solutions Limited IPO:
Review and Recommendation of Technknow Green Solutions SME IPO by IZ team is 6/10
1. Techno Green Solutions Limited, a key player in the environmental services sector, has evolved significantly since its inception in 2001. Offering a wide array of services such as consulting, environmental compliance, and sustainability, the company addresses the myriad challenges associated with environmental management. One of its standout features is its technology-first approach, incorporating digitization, artificial intelligence, and Internet of Things to offer more nuanced and effective solutions beyond traditional environmental consulting.
2. The company's market opportunity is considerably broad, catering to diverse industrial sectors like infrastructure, automotive, and real estate. This diverse clientele becomes even more crucial in the wake of growing environmental awareness and stringent regulations. The company has also managed to cultivate a mix of repeat and new customers, underlining its reliability and quality of service.
3. Techno Green is poised to benefit immensely from the recent SEBI guidelines mandating ESG norms for large listed companies. Given its already established rapport and service offerings in sustainability reporting and environmental compliance, it is well-positioned to capture this emerging market. The company has already initiated partnerships with these large listed companies, paving the way for new revenue streams and reinforcing its market relevance.
4. Financially, Techno Green has shown remarkable growth, with its consulting business witnessing a revenue share increase from 35% to 65% in the last three years. For the fiscal year ending in 2023, the company reported encouraging numbers with total revenue of 1,486 lakhs, an EBITDA of 654 lakhs, and a PAT of 451 lakhs. Their financial strategy, which includes a mix of advances and stage-wise payments, has aided in maintaining healthy cash flows.
5. However, there are associated risks, mainly the company’s heavy reliance on government and semi-government contracts for a substantial part of its revenue. Moreover, the environmental consulting landscape is highly competitive, with established giants like KPMG, E&Y, PWC, and Deloitte also in the fray.
6. Geographically, Techno Green has a solid footprint in Maharashtra and has expanded its reach to other states and international markets, including the Middle East. The company has ambitious plans to triple its revenue over the next three years through strategic expansions into the European and U.S. markets.
7. The upcoming IPO is set at a P/E ratio of 14x and a market capitalization of 64 Cr, which appears to be a fair valuation considering the company's growth prospects and market positioning. The net proceeds from the IPO are planned for various strategic investments, including R&D, office premises, team expansion, and other corporate purposes.
8. The strength of the company also lies in its seasoned management team. Led by Dr. Ajay Ramakant Ojha and Prasad Rangrao Pawar, both with over two decades of experience in the environmental industry, they are well-supported by CFO Aniket Vijay Kadam, who brings in additional expertise from the construction and real estate sectors.
9. In conclusion, Techno Green Solutions Limited offers a compelling investment opportunity, especially in light of the new SEBI guidelines. With its comprehensive range of services, robust financial health, and strategic market and geographical positioning, the company is well-poised to capitalize on the burgeoning demand for environmental services. This makes the IPO an attractive proposition for investors seeking to invest in a financially stable company that also contributes significantly to environmental sustainability and compliance.
Discussion on Techknowgreen Solutions Limited IPO: