ECO Mobility, a leading player in the chauffeur-driven car rental market, has launched its IPO, which has garnered significant attention in the market. Here’s an in-depth look at the ECO Mobility IPO, its details, and whether it is a good investment opportunity for retail and institutional investors.
ECO Mobility IPO Details
The ECO Mobility IPO is a book-built issue, priced in the range of ₹318 to ₹334 per share, totaling ₹601.20 crores. This IPO is entirely an Offer for Sale (OFS) of 1.8 crore shares, meaning that the proceeds will go to the selling shareholders rather than the company. The subscription window opened on August 28, 2024, and will close on August 30, 2024. The allotment will be finalized by September 2, 2024, with the shares expected to be listed on the BSE and NSE on September 4, 2024.
ECO Mobility IPO Price and Lot Size listing date
The price band for ECO Mobility IPO is set at ₹318 to ₹334 per share. The minimum lot size for retail investors is 44 shares, requiring an investment of ₹14,696 at the upper end of the price band. For high-net-worth individuals (HNIs), the minimum investment starts at 14 lots, amounting to ₹205,744, while big HNIs need to invest in at least 69 lots, totaling ₹1,014,024.
ECO Mobility IPO subscription Reservations and Anchor Investors
The IPO offers 1.8 crore shares, with 20% allocated to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), 35% to Retail Individual Investors (RIIs), and 30% to Anchor Investors. The anchor investors have already contributed ₹180.36 crores by purchasing 54 lakh shares on August 27, 2024. These shares are subject to a lock-in period, with 50% of shares locked until October 2, 2024, and the remainder until December 1, 2024.
ECO Mobility Company Background
Incorporated in February 1996, ECO Mobility, also known as ECOS (India) Mobility & Hospitality Limited, is a prominent chauffeur-driven car rental service provider in India. The company primarily caters to corporate clients, including several Fortune 500 companies. ECO Mobility operates in 109 cities across India, offering chauffeured car rentals (CCR) and employee transportation services (ETS). Their service network covers 21 states and four union territories, highlighting their extensive reach.
As of March 31, 2024, ECO Mobility had completed over 3.1 million trips, serving the CCR and ETS needs of more than 1,100 organizations. The company boasts a fleet of over 12,000 vehicles, including economy cars, luxury cars, mini vans, and specialty vehicles like luggage vans and limousines. Their notable clientele includes InterGlobe Aviation (Indigo), HCL Corporation, Safexpress, Deloitte Consulting, Urbanclap, IndusInd Bank, and many more.
ECO Mobility IPO Financial Performance
ECO Mobility has shown robust financial performance in recent years. The company’s revenue grew by 34% to ₹568.21 crores for the fiscal year ending March 31, 2024, compared to ₹425.43 crores in the previous year. Profit After Tax (PAT) rose by 43%, reaching ₹62.53 crores, up from ₹43.59 crores in FY23. The company’s assets increased from ₹229.71 crores to ₹296.66 crores over the same period.
key details of the ECO Mobility IPO APPLY ?
| Details | Information |
|---|---|
| IPO Dates | August 28, 2024 – August 30, 2024 |
| Listing Date | September 4, 2024 |
| IPO Type | Book Built Issue |
| Issue Size | ₹601.20 Crores (1.8 Crore Shares) |
| Offer for Sale | 1.8 Crore Shares |
| Price Band | ₹318 – ₹334 per share |
| Face Value | ₹2 per share |
| Minimum Lot Size | 44 Shares |
| Minimum Investment (Retail) | ₹14,696 |
| Minimum Investment (sNII) | ₹205,744 (14 lots) |
| Minimum Investment (bNII) | ₹1,014,024 (69 lots) |
| Promoter Holding Pre-IPO | 97.75% |
| Promoter Holding Post-IPO | 67.75% |
| Reservation for Anchor Investors | 54,00,000 shares (30%) |
| Reservation for QIBs | 36,00,000 shares (20%) |
| Reservation for NIIs | 27,00,000 shares (15%) |
| Reservation for RIIs | 63,00,000 shares (35%) |
| Lead Managers | Equirus Capital Private Limited, IIFL Securities Ltd |
| Registrar | Link Intime India Private Ltd |
| Use of Proceeds | All proceeds to selling shareholders (Offer for Sale) |
| Key Financials (FY 2024) | Revenue: ₹568.21 Crores, PAT: ₹62.53 Crores, ROE: 42.75%, ROCE: 42.88% |
| Debt/Equity Ratio | 0.12 |
| PAT Margin | 11% |
| Market Capitalization Post-IPO | ₹2,004 Crores |
| Subscription Status (Day 2) | Overall: 5.50 times, Retail: 5.90 times, NII: 11.82 times, QIB: 0.05 times |
| Lock-in Period for Anchor Shares | 50% until October 2, 2024, remaining until December 1, 2024 |
ECO Mobility’s key performance indicators (KPIs) reflect a strong financial position, with a Return on Equity (ROE) of 42.75%, Return on Capital Employed (ROCE) of 42.88%, and a low Debt-to-Equity ratio of 0.12. The company’s PAT margin stands at 11%, and it has a market capitalization of ₹2,004 crores.
ECO Mobility IPO Objectives
Since this IPO is a pure OFS, ECO Mobility will not receive any funds directly from this offering. The proceeds will go to the selling shareholders, which include the promoters and early investors. The key promoters are Rajesh Loomba, Aditya Loomba, Nidhi Seth, the Rajesh Loomba Family Trust, and the Aditya Loomba Family Trust. Post-IPO, the promoters’ stake will decrease from 97.75% to 67.75%.
Subscription Status
As of August 29, 2024, the ECO Mobility IPO was subscribed 5.50 times. The retail category saw a subscription of 5.90 times, the NII category was oversubscribed by 11.82 times, while the QIB category was subscribed only 0.05 times. These subscription numbers indicate strong demand from retail investors and HNIs, suggesting positive sentiment toward the company’s prospects.
ECO Mobility IPO Expert Review and Analysis
Industry analysts have a favorable outlook on ECO Mobility, given its strong position in the B2B segment for chauffeur-driven car services. The company has shown resilience by bouncing back with strong financial growth after the pandemic. The IPO is considered fully priced, but given the company’s market leadership, expanding client base, and strong financial metrics, experts suggest it could be a good long-term investment. Potential investors may find value in holding the stock post-listing, as it may see increased visibility and valuation in the public markets.
ECO Mobility ipo gpm
ECO Mobility’s IPO presents an intriguing opportunity for investors, particularly those looking for exposure to the rapidly growing corporate mobility and chauffeur-driven car rental market. With a solid financial track record, a strong market position, and a diverse customer base, ECO Mobility is well-positioned for future growth. While the IPO is priced at a premium, the company’s consistent performance and market leadership make it an attractive investment for those willing to take a long-term view.
Investors interested in the ECO Mobility IPO should consider their risk tolerance, investment horizon, and the company’s growth potential before making a decision. The IPO opens a pathway for the company to unlock greater value and leverage its market position to expand further, providing a potentially rewarding opportunity for those who invest early.