ECOS Mobility IPO GMP: The initial public offering (IPO) of a chauffeur-driven car rental service provider, ECOS (India) Mobility & Hospitality, opens for public subscription today. Meanwhile, the unlisted shares of ECOS Mobility are commanding a healthy grey market premium (GMP) on the first day of its opening, with shares trading at a premium of Rs 194 or 58 per cent higher than the upper end of the IPO price of Rs 334, according to several websites that track grey market activities.
The ECOS Mobility IPO, which is entirely an offer for sale of 18,000,000 shares with a face value of Rs 2, is available at a price band of Rs 318-334 per share, with a lot size of 44 shares. Accordingly, investors must bid for a minimum of 44 shares and in multiples thereof, with the minimum amount required by a retail investor to bid for the ECOS (India) Mobility IPO being Rs 14,696.
ECOS Mobility has appointed Link Intime India Private as the registrar for the issue, while Equirus Capital and IIFL Securities are the book-running lead managers for the ECOS Mobility IPO.
ECOS Mobility has stated that the company will not directly receive any proceeds from the public issue, and all the offer proceeds will be received by the selling shareholders accordingly.
The three-day subscription window to bid for the ECOS Mobility IPO closes on Friday, August 30, 2024. Following the closure of the subscription window, the allotment of the ECOS Mobility shares is likely to take place on Monday, September 2, 2024, while the shares will be credited into demat accounts on Tuesday, September 3, 2024. Subsequently, ECOS Mobility shares will make their debut on the bourses – BSE, NSE – on Wednesday, September 4, 2024.
Should You Bid for the ECOS Mobility IPO?
Brokerages including Geojit, Swastika Investment, and Anand Rathi Research have shared their outlook on the public issue for investors. Here’s what they recommend for the ECOS Mobility IPO:
Geojit – Subscribe
Analysts at Geojit remain optimistic about the public issue of ECOS Mobility and have assigned a ‘Subscribe’ rating. According to them, at the upper price band of Rs 334, EMHL is available at a P/E ratio of 32x (FY24), which seems fully priced. “Considering its leading position in the industry with a large fleet size compared to peers, a robust client retention ratio of 90 per cent, increasing penetration in Tier-II and Tier-III cities, and a strong financial and margin profile, we assign a ‘Subscribe’ rating on a short- to medium-term basis,” said the brokerage in their report.
Anand Rathi Research Team – Subscribe
The Anand Rathi Research Team remains bullish on the public issue of ECOS Mobility and recommends that investors subscribe to the IPO, highlighting that the company is a leader in chauffeur-driven car services for corporate customers and a niche player in the B2B segment for corporate employees/customers/guests’ mobility. “At the upper price band, the company is valued at a P/E of 32.1x with a market cap of Rs 2,004 crore post-issue of equity shares and a return on net worth of 42.7 per cent. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a ‘Subscribe’ rating for the IPO,” said the Anand Rathi Research Team.
Swastika Investmart – Subscribe
Analysts at the Swastika Investmart recommend the investors to subscribe to ECOS Mobility for the listing gains. According to them, the IPO’s P/E valuation is on the higher side. “Given the mixed financial performance and high valuation, investors should adopt a wait-and-see approach for the long term. However, the strong market demand for this IPO could lead to a positive listing,” said Swastika Investmart in its report.
About ECOS (India) Mobility & Hospitality
ECOS (India) Mobility & Hospitality, incorporated in 1996, specialises in providing Chauffeur-driven Car Rentals (CCR) and Employee Transportation Services (ETS) to corporates in India. The CCR segment functions as a B2B2C business, catering to corporate clients with end-users such as employees or guests, while the ETS segment focuses on managing employee transportation between home and office.
First Published: Aug 28 2024 | 9:41 AM IST
