ECOS (India) Mobility & Hospitality Ltd is making its stock market debut today following the conclusion of its initial public offering (IPO). The company’s shares will be listed on both the BSE and NSE.
IPO Overview
The ECOS Mobility IPO opened on August 28 and closed on August 30. The IPO allotment was finalised on September 2, and today marks the listing day for the shares.
According to a notice from BSE, ECOS Mobility shares will start trading today, September 4, 2024, and will be included in the ‘B’ Group of Securities. The stock will be available for trading from 10:00 am during a Special Pre-open Session (SPOS).
Strong Grey Market Premium (GMP)
Before the listing, investors closely watched the ECOS Mobility IPO Grey Market Premium (GMP) to estimate the possible listing price. The GMP today is ₹161 per share, indicating that the shares are trading at a higher price in the grey market than the IPO price of ₹334 per share. Based on this, the estimated listing price for ECOS Mobility shares is around ₹495 per share, which would be a 48% premium over the IPO price.
Experts’ Predictions
Market analysts expect ECOS Mobility shares to have a strong debut on the stock exchanges today. They predict that the shares could list at a premium of 40% to 45% over the IPO price.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, noted that ECOS Mobility is a leading provider of chauffeur-driven car rental services. The IPO saw strong interest, with a subscription rate of 64.18 times and a significant grey market premium (GMP) of ₹160. However, she also cautioned that the company’s financial performance has been mixed, and the IPO’s valuation is on the higher side.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, mentioned that despite the high valuations and the fact that the IPO was a complete offer for sale, ECOS India received a strong response, particularly from Qualified Institutional Buyers (QIBs), who subscribed 136 times over their limit. He expects a decent listing gain of around 20% above the issue price, driven by market optimism.
Akriti Mehrotra, a Research Analyst at StoxBox, believes the strong demand for ECOS Mobility IPO will likely result in a 45% premium listing. She highlighted the company’s robust financial growth, with total revenue increasing significantly from ₹1,473.4 million in FY22 to ₹5,544.1 million in FY24.
IPO Details
The ECOS Mobility IPO was open for subscription from August 28 to August 30, with shares priced between ₹318 and ₹334. The IPO raised ₹601.20 crore, all through an offer for sale (OFS) of 1.8 crore equity shares. The IPO was heavily oversubscribed, with a total subscription of 64.26 times. The retail segment saw a 19.79 times subscription, while Non-Institutional Investors (NII) subscribed 71.23 times, and Qualified Institutional Buyers (QIBs) subscribed 136.85 times.
Equirus Capital Pvt Ltd and IIFL Securities Ltd acted as the book running lead managers for the IPO, and Link Intime India Private Ltd is the IPO registrar.
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