Ecos (India) Mobility & Hospitality Limited, a Himachal-focused online hotel booking platform, has filed its red herring prospectus with SEBI and is set to announce its IPO price band on August 23. According to the prospectus, the initial public offering will be a complete offer for sale of up to 18,000,000 equity shares with a face value of Rs. 2 each.
The company will launch its anchor book for the IPO on Tuesday, August 27, 2024, with the issue opening for public subscription from Wednesday, August 28, 2024, to Friday, August 30, 2024. Equirus Capital Private Limited and IIFL Securities Limited are serving as the book-running lead managers for the issue, while Link Intime has been appointed as the registrar.
Ecos (India) Mobility & Hospitality – Strength and Weakness
| Strength | Weakness |
| ECOS (India) Mobility & Hospitality Limited is a leading chauffeur-driven mobility provider in India, with ₹4,226.76 million in revenue and ₹435.91 million in profit after tax for Fiscal 2023. | ECOS Mobility’s reliance on technology means disruptions or failures in their outsourced technology systems could negatively impact operations and customer satisfaction. |
| The company operates over 9,000 vehicles across 109 cities, catering to diverse needs with economy cars, premium vehicles, and luxury coaches. | Dependence on key customers, particularly in major cities, exposes ECOS to the risks of reduced demand or termination of contracts, affecting financial stability. |
| ECOS serves 42 Fortune 500 and 60 BSE 500 companies, maintaining strong customer relationships that contribute to significant lifetime value. | An increase in vehicle prices and fleet costs could strain ECOS’s finances, hindering their ability to expand and upgrade their vehicle fleet efficiently. |
As stated in the RHP, since this is an offer for sale, the company will not directly receive any proceeds from the offer. All proceeds will be received by the selling shareholders in proportion to the shares sold by each as part of the offer. The company reported a revenue of Rs. 554 crore in FY24, up 31 percent from Rs. 422 crore in FY23, according to the filings. Its net profit after tax for FY24 was at Rs. 62.531 crore, up 43 percent from Rs. 43.591 crore in FY23.
ECOS (India) Mobility & Hospitality Limited Financial Information (Restated Consolidated)
ECOS (India) Mobility & Hospitality Limited’s revenue increased by 34% and profit after tax (PAT) rose by 43% between the financial year ending with March 31, 2024 and March 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 296.66 | 229.71 | 112.38 |
| Revenue | 568.21 | 425.43 | 151.55 |
| Profit After Tax | 62.53 | 43.59 | 9.87 |
| Net Worth | 177.41 | 115.13 | 71.56 |
| Reserves and Surplus | 165.41 | 115.07 | 71.5 |
| Total Borrowing | 21.72 | 32.95 | 3.34 |
| Amount in ₹ Crore |
