Ecos Mobility and Hospitality’s IPO was fully subscribed on day one due to strong retail and NII demand. Check GMP
Till 1:50 pm, the NII portion was subscribed 2.46 times while the retail portion was subscribed 2.10 times. Qualified institutional buyers had bid for only 1,232 of the 36 lakh shares reserved for them. Overall, the IPO was subscribed 1.58 times.
The current grey market premium (GMP) for Ecos Mobility is Rs 194, which is a 58% premium in the unlisted market.
The IPO is an offering for sale (OFS) only for 1.8 million shares. Since the IPO is an OFS, all proceeds will go to the selling shareholders.
Price range for Ecos Mobility IPO
The company has set a price band of Rs 318 to Rs 334 per share, with investors able to bid on 44 shares in one lot. Also Read: NSE plans to resubmit NOC to conduct Rs 30,000 crore IPO
Ecos Mobility IPO
Analysts advised investors to subscribe to the issue as the company is a leader in chauffeur-driven car services for corporate clients and is a niche player in the B2B segment. “At the upper end of the price band, the company is valued at a P/E of 32.1, with a market capitalization of Rs 20.04 crore after issue of equity shares and a return on equity of 42.7%. In terms of valuation, we believe the company is fairly valued. Hence, we recommend a ‘subscribe’ rating for the IPO,” said Anand Rathi.
Further details
Ecos Mobility has been providing chauffeured car rental and employee transportation services to corporate clients, including Fortune 500 companies in India, for over 25 years.
Equirus Capital and IIFL Securities are acting as bookrunners and lead managers for the issue.
The company operates a fleet of over 9,000 cars, minivans and luxury buses ranging from mid-size to luxury, consisting of various categories such as luxury vehicles (including vehicles from car brands such as Audi, BMW and Mercedes-Benz), small cars, premium vehicles and buses/vans.
In addition, special vehicles such as baggage carts, limousines, vintage cars and vehicles for barrier-free transport of people with disabilities are also available.
The company offers services to its clients across numerous industries including Information Technology, Business Process Outsourcing, Global Capability Centres (GCCs), Consulting, Healthcare, e-Commerce, Pharmaceuticals, Legal and Manufacturing including HCL Corp, HDFC Life, Thomas Cook, India, WM Global Tech and others.
Financial performance of Ecos Mobility
In FY 2024, the company’s revenue from operations increased 31% year-on-year to Rs 554 crore, while profit after tax (PAT) increased 43% to Rs 62.5 crore during the same period.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not reflect the views of Economic Times.)
