Unlisted shares of ECOS (India) Mobility & Hospitality Ltd are trading Rs 140 higher in the grey market, signalling a 41.92 per cent listing gain from the public issue.
Ecos Mobility IPO: The initial public offer of chauffeur-driven mobility provider Ecos (India) Mobility & Hospitality, which is going to be closed on Friday, has received over 12 times subscription. Till 10:43 am on the final day of bidding on Friday, the Rs 601.20-crore IPO received a 12.53 times subscription garnering bids for 15,78,40,628 shares as against the 1,26,00,000 shares on offer.
The category for non-institutional investors received 11.41 times subscription, while the portion for Retail Individual Investors (RIIs) got subscribed 31.20 times. The Qualified Institutional Buyers (QIBs) part got subscribed by 48 per cent.
On the first day of bidding on Wednesday, the IPO ended the day with 3.36 times subscription. It received 9.64 times subscription on Day 2.
The IPO was opened for public subscription on Wednesday.
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Ecos Mobility IPO GMP Today
According to market observers, unlisted shares of ECOS (India) Mobility & Hospitality Ltd are trading Rs 140 higher in the grey market than its issue price. The Rs 140 grey market premium or GMP means the grey market is expecting a 41.92 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Ecos Mobility IPO: Analysts’ Recommendations
Advising Investors to invest in the IPO for medium to long term, brokerage firm Master Capital Services Ltd in its IPO note said, “Businesses are increasingly prioritising employee well-being and productivity, recognising the value of a safe and comfortable commute, accordingly, premium cab services and ECOS (India) Mobility & Hospitality has taken advantage of this opportunity by becoming the largest and most profitable company in the chauffeur driven mobility provider segment in India. 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.”
The company is also focusing on the integration of technology in its services and have created a custom online booking tool to ensure operational excellence. The company also intends to expand its geographical footprint globally to capitalise on all the growth opportunities available. Investors looking to invest can invest in the IPO for medium to long term, it added.
Another brokerage firm Swastika also granted a ‘subscribe’ recommendation, while cautioning investors to adopt a wait-and-see approach for the long term.
In its IPO note, Swastika stated that while topline (revenue) growth is evident, profitability has declined. The IPO is a complete offer for sale, meaning the company will not receive any additional funds for growth. 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,” the brokerage firm said.
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Ecos Mobility IPO: More Details
The Initial Public Offer (IPO) is entirely an Offer For Sale (OFS) of up to 1,80,00,000 equity shares. The IPO has a price range of Rs 318-334 a share.
Ecos (India) Mobility & Hospitality Ltd on Tuesday said it has raised Rs 180.36 crore from anchor investors.
Since the public issue is entirely an OFS, the Delhi-based firm will not receive any proceeds from the IPO and the money will go to promoters selling shares.
The company has been providing chauffeured car rentals (CCR) and employee transportation services (ETS) to corporate customers for more than 25 years. It operates a fleet of more than 9,000 vehicles from economy to luxury cars. It also provides speciality vehicles like luggage vans, limousines, vintage cars and vehicles for accessible transportation for people with disabilities.
Equirus Capital and IIFL Securities are the book-running lead managers to the offer.
The company’s shares will be listed on BSE and NSE.
