ECOS (India) Mobility & Hospitality, commonly known as ECO Mobility, is gearing up for its initial public offering (IPO) scheduled to open on Wednesday, August 28. The three-day bidding process will close on Friday, August 30. The company has set a fixed price band for the IPO, ranging from ₹318 to ₹334 per share. Investors can place bids for a minimum of 44 equity shares and in multiples thereafter.
Founded in February 1996, ECO Mobility has established itself as a leading provider of chauffeur-driven car rental services in India, catering to corporate clients, including numerous Fortune 500 companies. The company's primary business revolves around chauffeured car rentals and employee transportation services.
IPO Structure: Offer for Sale
The ECO Mobility IPO is structured as an entirely Offer for Sale (OFS) of up to 1.8 crore equity shares, generating a total of ₹601.20 crore. The shares are being offloaded by the company's promoters, Rajesh Loomba and Aditya Loomba. It's important to note that ECO Mobility will not receive any proceeds from this offering; the funds will be directed to the selling shareholders. An anchor book allocation is planned for Tuesday, August 27, ahead of the public offering.
Expansive Presence and Operations
By the end of FY24, ECO Mobility had a significant presence in India, operating across 109 cities with a combination of its own vehicles and those managed by vendors. The company operates in 21 states and four union territories, serving over 1,100 organizations, including 60 companies from the BSE 500 and 42 Fortune 500 firms. Furthermore, ECO Mobility offers self-drive car rental services in major cities such as Delhi, Gurugram, Mumbai, and Bengaluru.
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With a robust fleet of over 12,000 vehicles, ECO Mobility caters to a diverse client base. Its fleet includes economy cars, luxury vehicles, mini vans, luxury coaches, and specialty vehicles such as luggage vans, limousines, vintage cars, and vehicles equipped for accessible transportation. In FY24 alone, the company completed more than 3.1 million trips, averaging over 8,400 trips per day, highlighting its operational efficiency and market demand.
Prominent Clientele
ECO Mobility’s client roster includes some of the most prominent names in various industries. Among its clients are InterGlobe Aviation, HCL Corp, Safexpress, Deloitte Consulting India, Urban Company, IndusInd Bank, Foresight Group, HDFC Life Insurance, Thomas Cook, Grant Thornton Bharat, Walmart Global Tech, VRB Consumer, Dreamfolks Services, Mercer Consulting, Fidelity, EXL Service.com (India), and VA Tech Wabag.
Financial Performance
The financial metrics of ECO Mobility reflect its strong market position. For the fiscal year ending March 31, 2024, the company reported a net profit of ₹62.53 crore on revenues totaling ₹568.21 crore. This represents a substantial growth from the previous fiscal year (FY23), where the company posted a net profit of ₹43.59 crore on revenues of ₹425.43 crore, indicating a 43% year-on-year profit increase and a 31% revenue growth.
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IPO Allocation and Listing Details
The IPO allocation is structured to ensure wide investor participation, with 50% of the offering reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% allocated for retail investors. Equirus Capital and IIFL Securities are serving as the lead book-running managers for this IPO, with Link Intime India Private Ltd acting as the registrar.
The basis of allotment for the IPO is expected to be finalized by Monday, September 2, with refunds initiated on Tuesday, September 3. The shares will be credited to the demat accounts of successful allottees on the same day. The company’s shares are slated to debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Wednesday, September 4.
With a proven track record in the chauffeur-driven car rental space and a solid presence across India's major cities, ECO Mobility's IPO is poised to attract significant attention from institutional and retail investors alike. The company's robust growth trajectory, strong client base, and expansive service offerings position it as a compelling player in the mobility and hospitality sector. As the IPO approaches, market participants will be closely watching to see how ECO Mobility's market debut unfolds and the potential impact on its future growth.
You can now apply for this IPO through UPI-based mandates with Motilal Oswal Demat Account. To know more, click here.
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