ECOS (India) Mobility & Hospitality | Eco Mobility IPO is the largest and most profitable chauffeur-driven mobility provider to corporates in India, OFS by the selling shareholders comprises up to 99,00,000 shares by Rajesh Loomba and up to 81,00,000 shares by Aditya Loomba.
IPO opens
August 28, 2024
IPO Closes
August 30, 2024
IPO Size (Rs.)
₹601.20 Cr
Breakup
OFS Only
Face Value:
₹ 2
IPO Price in Rs :
₹318 to ₹334 per share
Minimum Lot
44 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Equirus Capital , IIFL Securities Limited
Registrar
Link Intime
About ECOS (India) Mobility & Hospitality IPO:
The company is primarily engaged in the business of providing chauffeured car rentals (CRR) and employee transportation services (ETS) to corporate customers, including Fortune 500 companies in India, for more than 25 years.
The company is the largest and most profitable chauffeur driven mobility provider to corporates in India, in terms of revenue from operations and profit after tax for FY2023.
The company has a pan-India presence in 109 cities spread across 21 states and 4 union territories in India. The company carries out its operations in 97 cities through vendors.
In FY2024, the company serviced the CCR and ETS requirements of more than 1,100 organisations in India and have completed more than 3,100,000 trips averaging more than 8,400 trips in a day.
The company intends to expand its services in tier-II and tier-III cities to meet the rising demand for premium-quality car rentals.
Founded by ex-army officer Capt KR Loomba in 1996,
Financials : ECOS Mobility & Hospitality IPO
Particulars / Rs. Cr
2024(12)
2023(12)
2022(12)
Revenue from Operations
554.41
422.68
147.34
Revenue Growth (%)
31.17
186.86
–
EBITDA
89.963
69.727
18.051
EBITDA Margin (%)
16.23%
16.50%
12.25%
Net Profit for the period
62.53
43.59
9.87
Net Profit (%)
11.00%
10.25%
6.51%
Share Capital
12
0.06
0.06
Net Worth
177.41
115.13
71.56
Total Borrowings
21.718
32.952
3.337
Post issue Share Capital
12
FV
2.0
IPO price
334.0
EPS Fy23
7.3
PE Fy23
46.0
EPS Fy24 (annualized)
10.4
PE Fy24 (annualized)
32.0
Market cap in Lacs
2,004
Market cap / Sales
3.61
Anchor: ECOS Mobility & Hospitality IPO
“Ecos (India) Mobility & Hospitality Limited raises ₹180.36 crore from 19 Anchor Investors. 65.06% of the total allocation in o Anchor book was allotted to 10 domestic mutual funds. investors include, Whiteoak Capital fund, ICICI Prudential Mutual Fund, Aditya Birla Sunlife Mutual Fund, Nomura India, Nippon Life India Mutual Fund, Motilal Oswal Mutual Fund, Tata Mutual Fund, Franklin India Mutual Fund, Edelweiss Mutual Fund and Bandhan Mutual Fund.
Salient Points: ECOS Mobility & Hospitality IPO
ECOS (India) Mobility & Hospitality is the largest and most profitable chauffeur-driven mobility provider to corporates in India,
The company operates its fleet of vehicles on an asset light model.
Their own vehicles accounted for 5.81%,.
It claims the highest asset utilization of 16.04 times among peers for Fiscal 2023indicating efficient resource management.
company has very low debt with debt/equity ratio at 0.12 times in FY2024.
Peers:
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW
Ecos (India) Mobility
334.0
568.21
62.53
11.0%
32
3.61
42.75%
Wise Travel India
283
414.09
23.00
5.6%
29
1.64
15.62%
Shree OSFM E-Mobility
198
119.06
8
6.7%
35
2.4
15.24%
The company intends to expand its services in tier-II and tier-III cities to meet good demand for premium-quality car rentals.
For their Corporate car rental, they use a full stack technology system, including a central transport management system, customer application, online booking tool and driver application.
They have diverse clientele which includes prominent organizations across various sectors such as IT, consulting, BPO, e-commerce, healthcare. Some of the clients include Indigo, Deloitte Consulting, IndusInd Bank Limited, HDFC Life Insurance Company Limited, Walmart Global Tech etc.
Also into event transportation. It recently handled transportation needs of G20 meet.
The company’s Revenues have grown quite fast. Revenues from Operations grew to ₹ 544.41 Cr in FY2024 from ₹ 147.34 Cr in FY2022. The EBITDA margins increased to 16.23% from 12.25% during the same period.
Fy24 profits include Rs. 7 cr gain on sale of property and Rs. 6 cr treasury income. There was also G20 event which gave a good fillip. Hence this profit run rate may not be sustainable.
P/E ratio stands at 32.
I intend to apply in ECOS Mobility & Hospitality IPO if spare funds are available. . Good stickiness of customers. Valuations are high but still could attract some attention if current market conditions sustain till listing. Otherwise I think the issue is avenge considering high valuations being demanded,
GMP as reported on social media has been Rs. 170 (50%)
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
