ECOS Mobility & Hospitality IPO: All You Need To Know

ECOS (India) Mobility & Hospitality Ltd. plans to raise Rs 601.2 crore through an initial public offering, which is set to open on Aug. 28. The IPO consists of a total offer for sale of 1.8 crore shares and no fresh issue component.

The company has set a price band of Rs 318–334 per share with a face value of Rs 2 each for the issue, which closes on Aug. 30. At the upper price band, the market cap of ECOS (India) Mobility stands at Rs 2,004 crore, as per NDTV Profit calculations.

The minimum lot size for retail investors is 44 shares, requiring an investment of at least Rs 14,256.

• Issue opens: Aug. 28.

• Issue closes: Aug. 30.

• Issue price: Rs 318–334 per share.

• Total issue size: Rs 601.2 crore.

• Offer for sale: 1.8 crore shares.

• Bid lot: 44 shares.

• Listing: BSE and NSE.

The company will not directly receive any proceeds from the offer and all proceeds will be received by the selling shareholders in proportion to the offered shares sold by the respective selling shareholders as part of the offer.

The company is primarily engaged in the business of providing chauffeured car rentals and employee transportation services. It has been providing these services to corporate customers, including Fortune 500 companies in India, for more than 25 years.

As of March 31, 2024, it had a pan-India presence in 109 cities through its own vehicles and vendors, spread across 21 states and four union territories in India.

In fiscal 2024, through its CCR and ETS segments, the company has completed more than 31 lakh trips, averaging more than 8,400 trips in a day.

The company operates a fleet of more than 12,000 economy cars, luxury cars, minivans, and luxury coaches.

In fiscal 2024, fiscal 2023 and fiscal 2022, the company's revenue from operations stood at Rs 554.41 crore, Rs 4,22.68 crore and Rs 1,47.34 crore, respectively. Meanwhile, its profit after tax for the same period was Rs 6.25 crore, Rs 43.59 crore and Rs 9.87 crore, respectively.

• The business depends on its relationships with vendors who supply vehicles and chauffeurs. Any adverse changes in such relationships can impact its business operations.

• The company derives a significant part of its revenue from some customers, and it does not have long-term contracts with all of them.

• Any downturn in global capability centres would have an adverse impact on the company's revenue from customers in the ETS business segment, cash flows and financial conditions.

• The business incurs a significant expenditure towards its vendors and vehicle operation expenses. Any increase in factors affecting the pricing of the services provided by the vendors or the cost of operating vehicles may have an adverse impact on its business.