ECOS (India) Mobility IPO subscribed 8x on Day 2 so far; HNI portion booked about 20 times

The initial public offering (IPO) of ECOS (India) Mobility & Hospitality continued to attract a decent response from the investors during the second day of the bidding process thanks to strong buying interest from HNI investors of the issue. The issue was booked a little more than 3.4 times on the first day of the bidding.
 

The ECOS (India) Mobility & Hospitality is selling its shares in the price band of Rs 318-334 apiece. Investors can apply for a minimum of 44 shares and its multiples thereafter. It is looking to raise Rs 601.20 crore via IPO, which is entirely an offer-for-sale of up to 1.80 crore equity shares.
 

According to the data, the investors made bids for 10,42,38,244 equity shares, or 8.27 times, compared to the 1,26,00,000 equity shares offered for the subscription by 3.00 pm on Thursday, August 29. The three-day bidding for the issue will conclude on Friday, August 30.
 

The allocation for non-institutional investors (NIIs) was subscribed 19.65 times, while the portion reserved for retail investors saw a subscription of 8.07 times. However, the quota set aside for qualified institutional bidders (QIBs) quota was subscribed merely nine per cent as of the same time.
 

Incorporated in February 1996, ECOS (India) Mobility & Hospitality is a chauffeur driven car rental service provider in India. The New Delhi-based company's primary business is to provide chauffeured car rentals and employee transportation services. It has been offering these services to corporate clients, including Fortune 500 companies in India.
 

The grey market premium of ECOS (India) Mobility has seen a mild correction amid the rising volatility in the broader markets. Last heard, the company was commanding a premium of Rs 160-165 per share in the unofficial market, suggesting a listing pop of about 48-50 per cent for the investors. However, the premium in the grey market stood around Rs 195 a couple of days ago.
 

Brokerages are mostly positive on the issue suggesting investors to subscribe to it for a long term citing their strong market share, long term relations with the customers, pan India presence, and strong and consistent financial performance. However, client satisfaction, relationships with vendors, dependence on major customers and entirely an OFS are the key concerns.
 

ECOS India Mobility & Hospitality is  the largest and most profitable chauffeur-driven mobility provider in India, has a strong market position with operations in 109 cities. Its asset-light business model and focus on technological advancements drive profitability and operational efficiency, said Nirmal Bang Securities.
 

"The company’s superior financial metrics, including Ebitda margins of 16.3 per cent, high ROCE and ROE of 41.2 per cent and 35.7 per cent, respectively. Its consistent performance and strategic expansion, we recommend to subscribe to the issue," it added.
 

For the financial year ended on March 31, 2024, ECO Mobility reported a net profit of Rs 62.53 crore, with a revenue of Rs 568.21 crore. The company's bottomline came in at Rs 43.59 crore with a revenue of Rs 425.43 crore in the financial year 2022-23.
 

Ahead of its IPO, ECOS Mobility raised Rs 180.36 crore from anchor investors by allocating 54 lakh equity shares at Rs 334 apiece. 50 per cent for the offer has been reserved for qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the primary offering by ECOS Mobility. Retail investors will have 35 per cent of the net offer allocated for them.
 

Businesses are increasingly prioritizing employee well-being and productivity, recognizing the value of a safe and comfortable commute, accordingly, premium cab services and ECOS (India) Mobility has taken advantage of this opportunity by becoming the largest and most profitable company in the chauffeur driven mobility provider segment in India, said Master Capital Services.
 

"The company is also expanding its presence in Tier-II and Tier-III cities in India and increasing its penetration in cities with existing operations. It is also focusing on the integration of technology in its services and have created a custom online booking tool to ensure operational excellence," it said with a 'subscribe' for long term rating for the IPO.
 

IIFL Securities and Equirus Capital are the book running lead managers of the ECOS Mobility IPO, while Link Intime is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with September 4, Wednesday as the tentative date of listing on the bourses.