ECOS Mobility IPO Day 2: What Does the Grey Market Premium Indicate?
The ECOS Mobility IPO, launched on August 28, 2024, is generating significant interest in the Indian primary market. The IPO is set to close on August 30, 2024, with a price band of ₹318 to ₹334 per equity share and a face value of ₹2. The company has already secured ₹180.36 crore from anchor investors, indicating strong early demand.
Main Points
ECOS Mobility IPO Subscription Status
As of August 29, 2024, the IPO has been oversubscribed by 8.68 times overall. The breakdown of subscriptions shows that the retail portion has been subscribed 8.46 times, while the non-institutional investor (NII) segment has seen a remarkable subscription rate of 20.63 times. In contrast, the qualified institutional buyer (QIB) portion has been booked at just 9%.
Financial Performance and Valuation
ECOS (India) Mobility & Hospitality Ltd has reported impressive financial growth over the past three years. In fiscal 2024, the company recorded an operating revenue of ₹554.41 crore, up from ₹422.68 crore in fiscal 2023 and ₹147.34 crore in fiscal 2022. The profit after tax also saw a substantial increase, rising from ₹9.87 crore in fiscal 2022 to ₹62.53 crore in fiscal 2024. This growth positions the company favorably among its peers, with a P/E ratio of 32.1 at the upper price band, compared to Wise Travel India Ltd’s P/E of 20.82 and Shree OSFM EMobility Ltd’s P/E of 23.73.
Investment Recommendations
Brokerage firms such as Anand Rathi and BP Equities have assigned a ‘subscribe’ rating to the ECOS Mobility IPO, citing its fair valuation and potential for medium to long-term gains. They highlight the company’s leadership in chauffeur-driven car rentals and employee transportation services as key factors for positive investor sentiment. Other firms like Geojit Securities and Marwadi Shares have also recommended a buy.
Grey Market Premium
The grey market premium (GMP) for ECOS Mobility shares is currently around ₹161, indicating strong demand. This suggests that the shares could list at approximately ₹495, which is 48% higher than the upper end of the IPO price band.
Company Background
ECOS Mobility has been in the business of providing employee transportation services (ETS) and chauffeur-driven car rentals (CCR) for over 25 years. With a fleet of around 9,000 vehicles, the company caters to corporate clients across India, offering a range of vehicles from economy to luxury, including specialty options like limousines and accessible vehicles.
Upcoming Dates
- IPO Opening Date: August 28, 2024
- IPO Closing Date: August 30, 2024
- Allotment Date: September 2, 2024
- Credit of Shares: September 3, 2024
- Listing Date: September 4, 2024, on BSE and NSE.
