Ecos (India) Mobility & Hospitality is a prominent player in the chauffeured car rentals (CCR) and employee transportation services (ETS) sectors. With over 25 years of experience, the company has catered to numerous corporate clients, including several Fortune 500 companies in India. Their long-standing presence in the industry underscores their capability in providing high-quality transportation solutions.

IPO Details

The Ecos Mobility IPO is a Book Built Issue amounting to ₹601.2 crores, consisting entirely of an Offer for Sale of 18.00 lakh shares. The subscription period for the IPO begins on August 28, 2024, and closes on August 30, 2024. The allotment is expected to be finalized on Tuesday, September 3, 2024, with a tentative listing date on the BSE NSE set for Wednesday, September 4, 2024.

The share price band is set between ₹318 to ₹334 per share, with a minimum lot size of 44 shares. Retail investors are required to invest a minimum of ₹14,696, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹205,744 (14 lots or 616 shares). Equirus Capital Private Limited and IIFL Securities Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar for the issue.

Financial Performance

Ecos Mobility has exhibited impressive financial growth in recent years. Revenue surged from ₹1,515.54 million in FY22 to ₹5,682.05 million in FY24. EBITDA also increased significantly from ₹180.51 million in FY22 to ₹899.63 million in FY24. The PAT grew from ₹98.71 million in FY22 to ₹622.87 million in FY24, reflecting a robust financial trajectory.

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Valuation Insights

For the Ecos Mobility IPO, the company is offering shares at a pre-issue EPS of ₹10.45 and a post-issue EPS of ₹10.45. The pre-issue P/E ratio stands at 32.05x, and the post-issue P/E ratio is also 32.05x, compared to an industry P/E ratio of 31.85x. The company’s Return on Capital Employed (ROCE) for FY24 is 42.88%, and the Return on Equity (ROE) is 42.75%. These metrics suggest that the IPO is fairly priced.

Grey Market Premium

The Grey Market Premium (GMP) for the Ecos Mobility IPO is expected to range between ₹100 to ₹110. This premium indicates potential listing gains of 30% - 35%. While GMP can provide an indication of investor sentiment, it should be noted that it is not a definitive measure of future performance. The premium reflects demand and supply dynamics in the unregulated grey market and is provided for educational purposes.

Allotment and Subscription Status

The IPO allotment date for Ecos Mobility is September 3, 2024. Investors can check their allotment status on the registrar’s website from this date. To check allotment status:

Visit the IPO allotment status page.

Select Ecos Mobility Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The IPO will be a complete Offer for Sale, meaning the proceeds will be received by the Selling Shareholders. The company itself will not receive any funds directly from the offer.

Conclusion

The Ecos (India) Mobility & Hospitality IPO presents a promising opportunity for investors, given its strong financial performance and favorable Grey Market Premium. With robust revenue growth and high profitability metrics, the IPO is recommended for investment based on both potential listing gains and long-term growth prospects. Investors should consider the company's solid track record and financial health when making their investment decisions.

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