Ecos Mobility IPO: Price band set at ₹318-334/share

The Indian share market is gearing up for another exciting IPO. Ecos (India) Mobility & Hospitality, a leading player in the chauffeur-driven mobility service sector, will launch its initial public offering (IPO) on Wednesday, August 28. With a strong track record and a promising growth outlook, the IPO is expected to attract significant investor interest.

IPO details

The three-day subscription window for the Ecos IPO will close on Friday, August 30. Following the successful completion of the issue, the company is anticipated to make its debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in the coming week. While the exact dates for share allotment and listing have not been finalised yet, investors are eagerly awaiting the opportunity to participate, and invest in this IPO.

Anchor investors show strong support

Ahead of the IPO, Ecos successfully raised a substantial amount of ₹180.36 crore from a group of prominent anchor investors. Notable names such as WhiteOak Capital Mutual Fund, ICICI Prudential MF, Aditya Birla Sun Life MF, and Nippon India MF were among the investors who participated in the anchor round. This strong support from anchor investors is a positive indicator of the market's confidence in the company's growth prospects.

IPO size and price band

The price band for the Ecos IPO has been set at ₹318-334 per share. The company's maiden public issue is entirely an offer for sale (OFS) of 1.8 crore equity shares, worth ₹601 crore at the upper end of the price band. Importantly, there is no fresh issue component in this IPO, meaning the proceeds will go directly to the promoters, Rajesh Loomba and Aditya Loomba, who are selling their shares.

Investor allocation

The issue has been allocated as follows:

• Qualified Institutional Investors (QII): 50%
• Retail Investors: 35%
• Non-Institutional Investors (NII): 15%

Investors can bid for a minimum of 44 equity shares and in multiples of 44 thereafter.

Company's business and growth prospects

Ecos has been providing chauffeur-driven car rentals (CCR) and employee transportation services (ETS) to corporate customers for over two decades. The company operates a fleet of more than 9,000 vehicles, ranging from economy to luxury cars. Also, it offers specialised vehicles like luggage vans, limousines, vintage cars, and accessible transportation for people with disabilities.

The global corporate mobility market, including ETS and CCR, is projected to experience steady growth at a compound annual growth rate (CAGR) of 9.6% from 2023 to 2030. India is anticipated to lead this growth, with a projected CAGR of 10.7% during the same period. This favourable market outlook presents significant opportunities for Ecos to expand its operations and capture a larger market share.

Conclusion

The Ecos (India) Mobility & Hospitality IPO offers investors an attractive opportunity to participate in a promising growth sector. With a strong track record, a diversified fleet, and a favourable market outlook, the company is well-positioned to capitalise on the growing demand for corporate mobility services. As the IPO approaches its subscription period, investors are eagerly awaiting the opportunity to invest in this exciting venture.