ECOS Mobility IPO booked 1.18x on Day 1 so far: GMP, subscription status, review, key dates, more. Apply or not?

ECOS Mobility IPO: Ecos (India) Mobility and Hospitality Ltd, a provider of chauffeur-driven mobility, is all geared up to make its debut on D-Street today, which is Wednesday, August 28. The IPO price band for the issue has been set within the range of ₹318 to ₹334 per equity share with a face value of ₹2. The company has secured ₹180.36 crore from anchor investors. Interested investors have the option to 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 specialty 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, and 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.

ECOS Mobility IPO subscription status

At 12:39 IST, on the first bidding day, the public issue has been subscribed to 1.18 times, the retail portion of the book build issue was booked 1.59 times, the NII segment was subscribed 1.77 times, and the QIB portion is yet to be booked, as per BSE data. 

ECOS Mobility IPO Review

Swastika Investmart Ltd

Although top-line growth is clearly visible, profitability has decreased, according to the brokerage. Since the IPO is a full offer for sale, the business won’t be receiving any further funding for expansion. The P/E value for the IPO is high. Long-term investors should take a wait-and-see stance due to the financial performance’s inconsistent results and high value. But a successful listing can result from the robust market demand for this IPO.

Dilip Davda

The firm is the industry leader in chauffeur-driven vehicle services for corporate clients, and it has a specialised position in the B2B market for corporate workers’, clients’, and visitors’ mobility, said Dilip Davda, contributing editor at Chittorgarh.com.

It recovered pace and showed strong growth in its performances for FY23 and FY24 after struggling a little during the Pandemic. The issue looks to be fairly priced based on FY24 results. Despite being a pure secondary offer, it will have more preference for its business as a listed firm due to increased exposure and value unlocking upon listing. Capital for the medium to long term may be parked by investors.

ECOS Mobility IPO details

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 GMP today

ECOS Mobility IPO grey market premium is +194. This indicates ECOS Mobility share price were trading at a premium of ₹194 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ECOS Mobility share price was indicated at ₹528 apiece, which is 58.08% 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.