Ecos (India) Mobility & Hospitality Limited, a company with over 25 years of experience in providing chauffeured car rentals (CCR) and employee transportation services (ETS), has launched its ₹601.2 crore IPO, set to open for subscription from August 28, 2024, to August 30, 2024. The IPO is a Book Built Issue, entirely comprising an Offer for Sale of 18.00 Lakh Shares. The allotment is expected to be finalized on September 3, 2024, with shares set to be listed on the BSE and NSE on September 4, 2024.

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

Ecos (India) Mobility & Hospitality Limited's Financial Performance

Ecos Mobility has demonstrated remarkable financial growth over recent years, reflecting its strong market presence and operational efficiency. The company's revenue surged from ₹1,515.54 Millions in FY22 to ₹4,254.29 Millions in FY23, and further to ₹5,682.05 Millions in FY24. Similarly, EBITDA increased from ₹180.51 Millions in FY22 to ₹899.63 Millions in FY24. The Profit After Tax (PAT) also showed significant growth, rising from ₹98.71 Millions in FY22 to ₹622.87 Millions in FY24. These figures highlight Ecos Mobility's ability to scale and achieve profitability, positioning it as a strong contender in the mobility and hospitality sector.

Ecos Mobility IPO Pricing and Valuation

The pre-issue Earnings Per Share (EPS) for Ecos Mobility stands at ₹10.45, with a post-issue EPS also at ₹10.45. The pre-issue Price-to-Earnings (P/E) ratio is 32.05x, and the post-issue P/E ratio remains the same at 32.05x, closely aligning with the industry P/E ratio of 31.85x. The company's Return on Capital Employed (ROCE) for FY24 is an impressive 42.88%, and the Return on Equity (ROE) is 42.75%, indicating a healthy return for investors and suggesting that the IPO is fairly priced.

Grey Market Premium (GMP) and Investment Consideration

The Grey Market Premium (GMP) for Ecos Mobility Limited IPO is expected to range between ₹100 to ₹110, indicating potential listing gains of 30% - 35%. However, it is important to recognize that the GMP is speculative and should not be the sole determinant in making investment decisions. The actual price discovery will occur when the shares are listed on the stock exchange, and the GMP serves only as an informal indicator of market sentiment.

Ecos Mobility IPO Allotment Process

The allotment date for the Ecos Mobility IPO is slated for September 3, 2024. Investors can check their allotment status by visiting the registrar's website and selecting "Ecos Mobility Limited IPO" from the dropdown list of IPOs. By entering their application number, PAN, or DP Client ID, investors can easily determine their allotment status.

Investment Recommendation

Considering Ecos Mobility's robust financial growth, fair valuation, and the strong industry presence, the IPO offers a promising investment opportunity. The Grey Market Premium suggests significant listing gains, making it an attractive option for investors seeking both short-term and long-term benefits. However, as with all investments, potential investors should carefully evaluate the company's financials, market conditions, and personal investment goals before making a decision.

Overall, Ecos (India) Mobility & Hospitality Limited's IPO is recommended for those looking for listing gains or long-term investment opportunities in a company with a strong track record and growth potential.

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