ECOS Mobility IPO Day 2: From finance to GMP, 10 key aspects of RHP you should know before investing

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

10 things you should know about RHP

1. ECOS Mobility IPO: subscription details

ECOS Mobility opened for subscription on August 28, 2024 and will be available for subscription until August 30, 2024. The price range for the IPO of ECO Mobility is ₹318 a ₹334 per share. An application must have a minimum lot size of 44 shares. Therefore, retail investors must invest a minimum of ₹14,696.

2. ECOS Mobility IPO: Objectives of the issue

He ₹ECO Mobility’s Rs 601.20 crore IPO is an accounting offer. The entire issue is an offer to sell 1.8 crore shares. Therefore, the company will not receive any money from the offer directly, but rather all the proceeds of the offer will go to the selling shareholders in proportion to the offered shares that each selling shareholder has sold as part of the offer.

3. ECO Mobility IPO: Lead Managers and Registrant

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

4. ECOS Mobility IPO: Award and listing details

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

5. ECOS Mobility IPO: promoters

The company’s key promoters 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 set out in contracts with its clients, the company 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 driver’s behaviour, fines can be as high as ₹100 for violations and only ₹100 for the most serious. Non-compliance may result in the cancellation of reservations, damaging the company’s image and having a negative effect

7. About ECOS (India) Mobility & Hospitality Limited

ECOS (India) Mobility & Hospitality Limited, an Indian company, was established in February 1996 and offers chauffeur-driven car rentals. The company’s main lines of business are Employee Transport Services (ETS) and Chauffeur-Driven Car Rental (CCR).

8. ECOS Mobility IPO: financial data

Between March 31, 2023, and March 31, 2024, ECOS (India) Mobility & Hospitality Limited’s net profit increased by 43% and 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

At this time, the Grey Market Premium (GMP) for ECOS Mobility’s IPO is +160. This indicates that ECOS Mobility shares are currently trading at a premium of +160. ₹160 on the grey market during the ₹334 offer price.

The market is therefore expecting Ecos Mobiliy to go public. ₹494, a premium of 47.9% over the issue price.

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