ECOS Mobility IPO: The initial public offering (IPIO) of Ecos (India) Mobility and Hospitality Ltd hit the Indian primary market on Wednesday, August 28. The public issue will remain open until August 30 2024. The IPO price band for the issue has been set within ₹318 to ₹334 per equity share with a face value of ₹2. The company has secured ₹180.36 crore from anchor investors. Interested investors can bid for a minimum of 44 equity shares and then in multiples of 44 equity shares thereafter. The public issue closes on Friday, August 30.
Qualified institutional investors have been allocated half of the issue size, while retail investors have been allocated 35%, and non-institutional investors have been allocated the remaining 15%.
For over 25 years, the firm has offered corporate clients employee transportation services (ETS) and chauffeured car rentals (CCR). It has about 9,000 automobiles in its fleet, ranging from compact to high-end models. Additionally, it offers speciality vehicles such as limos, baggage vans, classic automobiles, and vehicles that are accessible to those with impairments for transportation.
According to the red herring prospectus, Wise Travel India Ltd has a P/E of 20.82, and Shree OSFM EMobility Ltd has a P/E of 23.73. These are the company's listed peers.
The company's operating revenue was ₹554.41 crore in fiscal 2024, ₹422.68 crore in fiscal 2023, and ₹147.34 crore in fiscal 2022. Over the same period, the company's profit after tax stood at ₹62.53 crore, ₹43.59 crore, and ₹9.87 crore, respectively.
By 3:51 PM on day two of bidding, the public issue had been subscribed to 8.68 times, the retail portion of the book build issue had been subscribed to 8.46 times, the NII segment had been subscribed to 20.63 times, and the QIB portion had been booked 9%, as per BSE data.
Giving a ‘subscribe’ tag to the public issue, Anand Rathi research says, “ECOS (India) Mobility & Hospitality Limited is a chauffeur driven car rental service provider in India. The company's primary business is to provide chauffeured car rentals (“CCR”) and employee transportation services (“ETS”). The company is the leader in chauffeur driven car services for corporate customers and is a niche player in B2B segment for corporate employees/customers/guests’ mobility. At the upper price band, the company is valuing at a P/E of 32.1x with a market cap of ₹ 20,040 million post-issue of equity shares and a return on net worth of 42.7%. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a “SUBSCRIBE” rating to the IPO.”
BP Equities has also assigned a 'subscribe' tag to the book build issue, saying, "On the upper price band, the issue is valued at a P/E of 32.1x based on FY24 earnings, which we feel is fairly valued. We, thus, recommend a SUBSCRIBE rating to the issue from a medium to long-term perspective."
Geojit Securities, GEPL Capital,Marwadi Shares and Finance, Nimal Bang, SMIFS, and Ventura Securities have also assigned a ‘buy’ tag to the book build issue.
The public issue is purely offer for sale of 18,000,000 equity shares. Through this sale, Rajesh and Aditya Loomba, who are part of the promoter group, will be selling up to 9,900,000 and 8,100,000 equity shares, respectively.
The RHP states that the firm will not directly receive any revenues from this offer, as it is an offer for sale. The selling shareholders will get all profits in proportion to the shares they each sold during the offer.
The ECO Mobility IPO's book running lead managers are Equirus Capital Private Limited and Iifl Securities Ltd, while the issue's registrar is Link Intime India Private Ltd.
ECOS Mobility IPO grey market premium is + ₹161. This indicates ECOS Mobility's share price was trading at a premium of ₹161 in the grey market, according to market observers.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ECOS Mobility shares was Rs495 apiece, which is 48% higher than the IPO price of ₹334.
According to grey market activities over the past 7 sessions, today's IPO GMP is trending upwards and is anticipated to have a strong listing. Investorgain.com analysts report that the GMP ranges from ₹0 to ₹194, with the highest value recorded.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
