ECO Mobility IPO: Complete Review, Valuation, Date & GMP

ECO Mobility IPO-Complete Overview

ECO Mobility IPO a Mainboard IPO is a book-built issue of Rs.601.20 crore (18,000,000 Shares) by ECOS (India) Mobility & Hospitality Ltd. that was founded in February 1996 and began offering chauffeur-driven automobile rentals in India. The company's main lines of business are Employee Transportation Services (ETS) and Chauffeured Car Rentals (CCR).

In terms of operating revenue and PAT for Fiscal 2023, it is the biggest and most profitable chauffeur-driven mobility service for companies in India.

Fortune 500 companies in India are among the major clientele that the organization has been providing these services. The company operated in 109 cities across India as of March 31, 2024, employing both its own cars and vendors. Its widespread distribution throughout 21 states and 4 union territories demonstrated its wide-ranging influence and infiltration into various areas of the nation.

Over 1,100 Indian organizations' CCR and ETS needs were met by ECOS (India) Mobility in Fiscal 2024. The company has self-driving cars available in Bengaluru, Delhi, Mumbai, and Gurugram. Through its CCR and ETS sectors, ECOS (India) Mobility completed over 3,100,000 journeys in Fiscal 2024, averaging over 8,400 trips each day. 

The company has a fleet of more than 12,000 vehicles, comprising luxury, compact, and economy models in addition to specialty vehicles like limousines, vintage cars, luggage vans, and accessible transportation for individuals with disabilities.

The company's clientele includes InterGlobe Aviation Ltd.(Indigo), HCL Corporation Pvt. Ltd., Safexpress Pvt. Ltd., Deloitte Consulting India Pvt. Ltd., Urbanclap Technologies Pvt. Ltd.(Urban Company), IndusInd Bank Ltd., Foresight Group Services FZCO, HDFC Life Insurance Company Ltd., Thomas Cook, India, Grant Thornton Bharat LLP, WM Global Technology Services India Pvt. Ltd.(Walmart Global Tech), VRB Consumer Products Pvt. Ltd., Pinkerton Corporate Risk Management Pvt. Ltd., MedGenome Labs Ltd., Dreamfolks Services Ltd., Mercer Consulting(I) Pvt. Ltd., FNF India Pvt. Ltd.(Fidelity), exl Service.com (India) Pvt. Ltd., Gujarat Guardian Ltd. and VA Tech Wabag Ltd.

This new IPO is to be launched on 28 August 2024, and its ‘initial public offering’ will end on 30 August 2024.

ECO Mobility IPO Overview

The Rs.601.20 crore ECOS (India) Mobility & Hospitality Ltd. IPO comprises a wholly Offer for Sale (OFS) of 1.8 crore Shares amounting to Rs.601.20 crore out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO date is from August 28 to August 30, 2024. The IPO listing is on Wednesday, September 04, 2024, and it will be held on the BSE and NSE. ECO Mobility IPO price band is between Rs.318 to Rs.334 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

Company Financial

The company’s revenue increased by 34% and PAT increased by 43% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2024.

• The total assets of the company are Rs.296.66 crore.

• The company’s total revenue is over Rs.568.21 crore.

• The company’s PAT is Rs.62.53 crore.

• The net worth of the company is Rs.177.41 crore.

• The company's EBITDA is Rs.89.96 crore.
  
  

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in Million)

 

Business Verticals-wise Revenue Bifurcation For The Last Three Fiscals

(Values in Million)

Geography-wise Revenue Bifurcation For The Last Three Fiscals

(Values In Million)

 

Revenue From Operations Outside India For The Last Three Fiscals

(Values In Million)

The Objective of The Issue

The Offering Shareholders will receive all Offer Proceeds in proportion to the Offered Shares they sell as part of the Offer, hence the Company will not receive any Proceeds from the Offer directly.

Peers of ECO Mobility Ltd.

 

Evaluation

The ECO Mobility IPO price is between Rs.318 to Rs.334 for each Share.

Evaluation of P/E Ratio

Considering the FY 2024, with an EPS of Rs.10.42 from the last year, the resulting P/E ratio is 32.05x.

Considering the weighted EPS of Rs.7.91 for the last three years, the P/E ratio is 42.22x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 22.28x.

In simple words, the P/E ratio of ECO Mobility IPO (32.05x), compared with the industry’s average P/E of 22.28x, has an overvaluation. Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

The industry P/E Ratio is computed based on the closing market price of the Share as of 16 August 2024, and EPS as of 31 March 2024.

IPO's Strengths 

• In the market for chauffeur-driven mobility services, India's biggest and most lucrative supplier in terms of operating income and net profit for the FY 2023.

• Enduring client connections with business synergies between several business divisions.

• Reputable brand developed over years of operational performance.

• The all-encompassing technological environment that promotes operational superiority.

• trong finances and reliable performance.

 

IPO’s Weaknesses 

• The business relies on partnerships with suppliers who provide it with cars and chauffeurs thus any negative changes to these ties, or inability to form new ones, could harm its operations and commercial outcomes.

• Any decline in Global Capability Centers (GCC) would harm its cash flows, financial situation, and revenue from clients in the ETS business sector.

• It may be challenging to identify misconduct by the workers and chauffeurs, so it could damage its reputation and brand as well as harm the financial situation, operational outcomes, and business prospects.

• The pricing may be impacted by the fierce competition in the chauffeur-driven mobility service market, which could lower its profits and Sales.

• The Offer for Sale will not generate any revenue for the company. The net proceeds from the offer for Sale will be distributed to the selling Shareholders.

 

ECO Mobility IPO GMP Today

Its IPO GMP today is Rs.51 as of 24 August 2024. With a price band of Rs.334, the ECO Mobility IPO's listing price (estimated) is Rs.385.

 

 

ECO Mobility IPO Timetable (Tentative)

The IPO is scheduled from August 28 to August 30, 2024, with IPO allotment on September 02, 2024, refund initiation on September 03, 2024, and listing on September 04, 2024.

 

ECO Mobility IPO Details 

The IPO with a face value of Rs.2 per Share is set to start on August 28, 2024, close on August 30, 2024, and offers a total issue size of 18,000,000 Shares between Rs.318 to Rs.334 per Share with a Lot size of 44 Shares and will be listed at BSE and NSE.

 

ECO Mobility IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (44 Shares) amounting to Rs.14,696, and 13 Lots (572 Shares) amounting to Rs.191,048 respectively, while for HNI investors, the minimum Lot is 14 (616 Shares) amounting to Rs.205,744.

ECO Mobility IPO Reservation

Promoters and Management of ECO Mobility Ltd. 

• Rajesh Loomba

• Aditya Loomba

• Nidhi Seth

• Rajesh Loomba Family Trust

• Aditya Loomba Family Trust
  
  

 

ECO Mobility IPO Lead Managers

• Equirus Capital Private Ltd.

• Iifl Securities Ltd.

 

 

Dividend Policy

The company has not paid any dividends except Rs.2.55 per Equity Share in FY 2024.

Conclusion

The company has experienced negative cash flow in investing activities and financing activities in the last few fiscal years. To fulfill its objectives, the company is currently conducting an IPO for the public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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