ECOS Mobility IPO Day 2: From Financials to GMP, 10 key things from the RHP you should know before investing

ECOS Mobility IPO Day 2: The ECOS (India) Mobility & Hospitality Limited initial public offering (IPO) opened for subscription on 28 August 2024 and will be available for subscription till 30 August’2024. From Financials to GMP, Here are 10 key things from the RHP (Red Herring Prospectus) you should know before investing

10 things to know from the RHP

1.ECOS Mobility IPO: Subscription details

ECOS Mobility opened for subscription on 28 August 2024 and will be available for subscription till 30 August’2024. The price range for ECO Mobility’s IPO is ₹318 to ₹334 per share. An application must have a minimum lot size of 44 shares. Retail investors are thereby required to invest a minimum of ₹14,696.

2. ECOS Mobility IPO: Objectives of the issue

The ₹601.20 crore ECO Mobility IPO is a book-built offering. The entire issue is an offer to sell 1.8 crore shares. Therefore, no money from the Offer will be received by the Company directly; rather, all of the Offer Proceeds will go to the selling shareholders in proportion to the Offered Shares that each Selling Shareholder sold as part of the Offer.

3. ECO Mobility IPO: Lead Managers and Registrar

The ECO Mobility IPO’s book running lead managers are Equirus Capital Private Limited and Iifl Securities Ltd, while the issue’s registrar is Link Intime India Private Ltd.

4. ECOS Mobility IPO: allotment and listing details

On Monday, September 2, 2024, the allotment for the ECO Mobility IPO is anticipated to be completed. Wednesday, September 4, 2024 has been set as the tentative listing date for the ECO Mobility IPO on the BSE and NSE.

5. ECOS Mobility IPO: Promoters

The key promoters of the company include Rajesh Loomba, Aditya Loomba, Nidhi Seth, Rajesh Loomba Family Trust and Aditya Loomba Family Trust.

6. ECOS Mobility IPO: Key Risks

Compliance with service standards: As stated in its client contracts, the business is obliged to provide excellent service standards. If these requirements are not met—for example, due to late reporting, mechanical problems with the car, or problems with the behavior of the chauffeur—penalties might be as high as ₹100 for infractions and as low as ₹100 for more serious ones. Failure to comply may result in the cancellation of reservations, damaging the company’s image and having an adverse effect

7. About ECOS (India) Mobility & Hospitality Limited

ECOS (India) Mobility & Hospitality Limited, an Indian company, was founded in February 1996 and offers chauffeur-driven automobile rentals. The company’s main lines of business are employee transportation services (ETS) and chauffeured vehicle rentals (CCR).

8. ECOS Mobility IPO: Financials

Between March 31, 2023, and March 31, 2024, ECOS (India) Mobility & Hospitality Limited’s net profit rose by 43% and its sales by 34%, respectively, during the company’s fiscal year.

9. ECOS Mobility IPO: Peers

Shree OSFM E-Mobility Ltd and Wise Travel India Ltd are the two listed Peers of ECOS Mobility.

10. ECOS Mobility IPO: GMP

As of right now, the ECOS Mobility IPO’s Grey Market Premium, or GMP, is +160. This indicates that the shares of ECOS Mobility are currently trading at a premium of ₹160 in the grey market over the ₹334 offer price.

The market thereby is expecting Ecos Mobiliy listing at ₹494, a 47.9% premium over the issue price.

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