ECOS Mobility IPO: The initial public offering (IPO) of the chauffeur-driven car rental service provider ECOS (India) Mobility & Hospitality Limited was subscribed over 64 times on the third and last day of today, according to BSE data. The mainboard IPO of the Delhi NCR-based company opened for subscription on Wednesday, August 28, 2024 and closed today August 30, 2024.
ECOS Mobility IPO offers up to 18,000,000 shares. The company has allocated up to 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), up to 15 per cent for non-institutional institutional investors (NII), and a minimum of 35 per cent of the offer is set aside for retail investors.
On the third and last day of bidding, ECOS Mobility IPO was subscribed 64.26 times. The portion reserved for QIBs was booked the highest at 136.85 times, the portion reserved for NIIs was booked 71.23 times, and the portion reserved for retail investors was booked 19.79 times. The IPO received 80,96,84,392 share applications against 1,26,00,000 shares offered on Friday.
According to BSE data, the public issue had been subscribed 9.64 times on the second day of bidding. The retail portion of the book build issue had been subscribed to 9.14 times, the NII segment had been subscribed to 23.53 times, and the QIB portion had been booked one per cent on the second day.
The public issue is a pure offer for sale (OFS) of 18,000,000 equity shares. Rajesh and Aditya Loomba, who are part of the promoter group, will sell up to 9,900,000 and 8,100,000 equity shares, respectively, through this sale.
ECOS Mobility IPO price band has been fixed in the range of ₹318 to ₹334 per equity share of face value of ₹2. The IPO's lot size is 44 equity shares and in multiples of 44 equity shares thereafter.
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 finalisation of the allotment of shares for the ECOS Mobility IPO is set for Monday, September 2. The company will initiate refunds on Tuesday, September 3, and the shares will be credited to the demat account of allottees on the same day following the refund.
ECOS (India) Mobility and Hospitality shares will likely be listed on BSE and NSE on Wednesday, September 4. Equirus Capital Private Ltd and IIFL Securities Ltd are the book-running lead managers for the ECO Mobility IPO, while Link Intime India Private Ltd is the issue's registrar.
According to the red herring prospectus, the company has been offering employee transportation services (ETS) and chauffeured car rentals (CCR) to corporate clients, including Fortune 500 companies in India, for more than 25 years. The company carried out over 3,100,000 journeys in FY24, averaging over 8,400 daily travels across its CCR and ETS divisions.
The firm also offers automobiles for self-drive in Delhi, Gurugram, Mumbai, and Bengaluru. It operates more than 12,000 vehicles, including luxury coaches, minivans, and economy automobiles. It also offers speciality vehicles, including limos, cargo vans, classic automobiles, and vehicles that may accommodate wheelchair accessibility.
The company serves clients in various fields, such as manufacturing, e-commerce, healthcare, consulting, information technology, business process outsourcing, and legal and pharmaceutical fields.
Some of the clients include InterGlobe Aviation Ltd (Indigo), HCL Corporation Private Ltd, Safexpress Private Ltd, Deloitte Consulting India Private Ltd, Urbanclap Technologies Private Ltd (Urban Company), IndusInd Bank Ltd, Foresight Group Services Ltd FZCO, HDFC Life Insurance Company Ltd, Thomas Cook, India, Grant Thornton Bharat LLP, and others.
The red herring prospectus states that the company's comparable companies include Wise Travel India Ltd, which has a P/E ratio of 20.82, and Shree OSFM EMobility Ltd, which has a P/E ratio of 23.73.
The company's operating revenue in fiscal 2024, fiscal 2023, and fiscal 2022 was ₹554.41 crore, ₹422.68 crore, and ₹147.34 crore, respectively. At the same time, the company's profit after tax was ₹62.53 crore, ₹43.59 crore, and ₹9.87 crore, respectively. The company's promoters are Aditya Loomba, Rajesh Loomba, Nidhi Seth, and the Aditya Loomba and Rajesh Loomba Family Trusts.
Also Read: ECOS Mobility IPO subscribed 9.6 times on day 2; check subscription status, GMP and other details
The ECOS Mobility IPO grey market premium is + ₹148. According to market observers, this indicates that ECOS Mobility's share price was trading at a premium of ₹148 in the grey market.
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 ₹482 apiece, which is 44.31 per cent higher than the IPO price of ₹334.
According to grey market activities over the past three sessions, today's IPO GMP is trending downwards. Investorgain.com analysts report that the GMP ranges from Re 0 to ₹194, with the highest value recorded. 'Grey market premium' indicates investors' readiness to pay more than the issue price.
