The initial public offering (IPO) of ECOS (India) Mobility and Hospitality Ltd, which operates under the brand name ECOS India Mobility, will open for subscription next Wednesday, August 28. The mainboard IPO announced the price band for its primary issue on Friday, August 23.
ECOS India Mobility IPO Details: Offer Size & Pricing
The Ecos India Mobility IPO is a 100% book-built issue worth ₹601.20 crore. It is completely an offer-for-sale (OFS) of 1.8 crore shares of a face value of ₹2 each. ECOS India Mobility IPO price band has been fixed at ₹318 to ₹334 per share. For retail investors, the minimum bid quantity, or lot size, is 44 shares.
ECOS India Mobility’s Business Strategy and Market Competition
Started in 1996, ECOS (India) Mobility and Hospitality is the largest and most profitable chauffeur-driven mobility provider, mainly to corporates in India, in terms of revenue from operations and profit after tax (PAT) for fiscal 2023.
The company is primarily engaged in providing chauffeured car rentals (CCR) and employee transportation services (ETS). It caters to corporate customers, including Fortune 500 companies, individuals, travel and tourism companies, hotels, and government bodies. It also offers self-driven cars in Delhi, Gurugram, Mumbai, and Bengaluru.
The company says that the organized sector comprises 15% of the market share and in the unorganized sector holds 85% of the market share of the total ETS market in India. Further, the organized sector holds 25% of the CCR market in India and the unorganized sector accounts for 75%. Such a large percentage of the unorganized sector poses a risk in terms of inconsistencies with service quality, scalability challenges and limited bargaining power with corporate clients.
ECOS India Mobility IPO promoters
The promoter and promoter group’s collective shareholding in ECOS India Mobility should fall to 67.75% after the OFS from the current 97.75%. Promoters Rajesh Loomba and Aditya Loomba currently own 48.76% and 38.99% of the company, respectively. Under the OFS, Rajesh Loomba and Aditya Loomba will divest up to 99 lakh and 81 lakh equity shares, respectively.
ECOS India Mobility Financial Overview
The company’s revenue from operations jumped 31% to ₹554 crore in FY24 compared to ₹422 crore in FY23. Its net profit increased 43% during the fiscal to ₹62.5 crore as against ₹43.5 crore in FY23.
Purpose Behind the ECOS India Mobility IPO
Since it’s an OFS, the selling shareholders will be entitled to the entire proceeds of the offer after deducting the offer expenses and relevant taxes thereon. The company will not receive any proceeds from the offer.
However, ECOS India Mobility said that it expects the listing of the equity shares to enhance its visibility and brand image and provide liquidity to its shareholders.
