ECOS (India) Mobility and Hospitality IPO Fully Subscribed On Day 1; GMP Hints Bumper Listing; Check

ECOS (India) Mobility and Hospitality Ltd, known for its chauffeur-driven mobility services, opens IPO subscription on Indian stock exchanges today, Wednesday, August 28. The company's initial public offering (IPO) has drawn significant attention, with a price band set between Rs 318 and Rs 334 per equity share.

ECOS Mobility's IPO is structured as an offer for sale, with 1,80,00,000 equity shares being put up for public subscription. Key shareholders Rajesh Loomba and Aditya Loomba will offload 99,00,000 and 81,00,000 shares, respectively. Importantly, the firm will not receive any proceeds from the sale directly, as the funds will be directed to the selling shareholders.

The IPO allows investors to bid for a minimum of 44 equity shares, with subsequent bids in multiples of 44 shares. The public issue will be open until Friday, August 30. Allocation for the issue includes 50% for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs).

ECOS Mobility boasts a 25-year legacy in the transportation sector, catering to corporate clients with employee transportation services (ETS) and chauffeured car rentals (CCR). Its fleet includes approximately 9,000 vehicles, ranging from compact cars to luxury models. The company also offers specialty vehicles such as limousines, baggage vans, and vehicles accessible to individuals with disabilities.

The company's financial performance has shown growth over the past few years. For fiscal 2024, ECOS Mobility reported an operating revenue of Rs 554.41 crore, up from Rs 422.68 crore in fiscal 2023 and Rs 147.34 crore in fiscal 2022. The profit after tax also saw a robust increase, reaching Rs 62.53 crore in fiscal 2024 compared to Rs 43.59 crore in fiscal 2023 and Rs 9.87 crore in fiscal 2022.

In terms of valuation, the company's peers include Wise Travel India Ltd and Shree OSFM EMobility Ltd, with P/E ratios of 20.82 and 23.73, respectively.

As of 12:33 pm on the first day of bidding, the IPO has been subscribed 1.15 times overall. The retail portion has seen a subscription rate of 1.56 times, while the Non-Institutional Investor (NII) segment is subscribed 1.74 times. The Qualified Institutional Buyer (QIB) portion is yet to be booked, according to the latest BSE data.

The grey market premium (GMP) for the ECOS Mobility IPO is currently +194, indicating that shares are trading at a premium of Rs 194 above the issue price. This suggests a strong market sentiment and a potentially lucrative listing. Analysts from Investorgain.com project an estimated listing price of Rs 528 per share, reflecting a 58.08% premium over the upper end of the IPO price band.

The IPO's book-running lead managers are Equirus Capital Private Limited and IIFL Securities Ltd. Link Intime India Private Ltd is appointed as the registrar for the issue.

With a strong grey market performance and substantial anchor investor backing, the ECOS Mobility IPO is poised for a promising debut. Investors looking for exposure to an established player in the chauffeur-driven mobility sector should keep a close watch on the listing and subscription developments.