The Securities and Exchange Board of India (SEBI) has given the green light for the initial public offerings (IPOs) of Ecos (India) Mobility and Hospitality Ltd and P N Gadgil Jewellers Ltd. Both companies submitted their draft red herring prospectus (DRHP) to SEBI in March 2024.
Ecos Mobility and Hospitality IPO
The IPO for Ecos Mobility and Hospitality will not have a fresh issue of shares. Instead, it will be an offer-for-sale (OFS) of 1.8 crore equity shares, making up 30% of the company’s total paid-up equity capital. The OFS involves the sale of 81 lakh equity shares by Aditya Loomba and 99 lakh equity shares by Rajesh Loomba, who are the promoters. This means that the company itself will not receive any funds from the IPO, as all the proceeds, minus the costs of the IPO, will go to the selling shareholders, who are the promoters.
For more than 25 years, Ecos Mobility and Hospitality has been providing employee transportation services (ETS) and chauffeured car rentals (CCR) to corporate clients, including several Fortune 500 companies in India. The company operates a fleet of around 9,000 vehicles, which include everything from economy cars to luxury vehicles like Audi, BMW, and Mercedes-Benz, as well as small vans and luxury coaches.
The lead managers for this IPO are IIFL Securities Limited and Equirus Capital Private Limited.
P N Gadgil Jewellers IPO
The IPO for P N Gadgil Jewellers consists of a fresh issue of equity shares worth up to ₹850 crore and an offer-for-sale worth up to ₹250 crore, making the total offer size up to ₹1,100 crore. The offer-for-sale portion includes equity shares from SVG Business Trust, a promoter selling shareholder, valued at up to ₹250 crore.
The funds raised from this IPO will be used for general corporate purposes, repaying or prepaying certain borrowings, and opening 12 new stores in Maharashtra.
The lead managers for this IPO are Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd (formerly Edelweiss Securities Limited), and BOB Capital Markets Ltd.
As of January 2024, P N Gadgil Jewellers was the second-largest organised jewellery retailer in Maharashtra by the number of stores.
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