Synopsis: ECOS (India) Mobility & Hospitality recently concluded its IPO, which was open from August 28 to 30, offering shares at a fixed price range of Rs. 318-334 per share. The IPO received a strong response, being oversubscribed 64.26 times, particularly driven by qualified institutional bidders.
The IPO of ECOS (India) Mobility & Hospitality, a New Delhi-based chauffeur-driven car rental service provider, was open for bidding from August 28 to August 30.
The company offered its shares at a fixed price band of Rs. 318-334 per share, with each lot consisting of 44 shares.
The IPO aimed to raise Rs. 601.20 crore through an offer-for-sale (OFS) of 1.80 crore equity shares, marking a significant milestone for the company.
The allotment of shares for the IPO is set to be finalized on Monday, September 2, with messages, alerts, or emails regarding the debit of funds or revocation of IPO mandates expected by Tuesday, September 3.
The shares are anticipated to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Wednesday, September 4.
The IPO witnessed a strong response from investors, with the overall subscription reaching 64.26 times.
This was largely driven by qualified institutional bidders (QIBs), whose quota was subscribed a staggering 136.85 times.
Non-institutional investors subscribed 71.23 times, while the retail investor quota saw 19.79 times subscription.
Grey Market Premium (GMP) and Investor Response:
As the IPO closed for bidding, the grey market premium (GMP) for ECOS (India) Mobility & Hospitality shares saw a correction.
Initially, the GMP was around Rs. 190-195 per share but dropped to Rs. 150-155 per share, indicating a potential listing gain of less than 45% for investors.
Despite this correction, the company remains optimistic about its market performance post-listing.
ECOS (India) Mobility & Hospitality was incorporated in February 1996 and primarily provides chauffeured car rentals and employee transportation services.
The company serves a wide range of corporate clients, including several Fortune 500 companies in India, and has established a strong market presence across the country.
Brokerage Recommendations and Concerns:
Brokerages have largely been positive about the IPO, advising investors to subscribe for the long term due to the company's strong market share, long-term customer relationships, and consistent financial performance.
However, some concerns have been raised regarding client satisfaction, vendor relationships, dependency on major customers, and the nature of the IPO being entirely an OFS.
Equirus Capital and IIFL Securities served as the book-running lead managers for the IPO, with Link Intime acting as the registrar.
Investors can check the allotment status on the BSE website or through Link Intime's online portal by following the specified steps.
How to Check Allotment Status:
To check the allotment status on the BSE website, investors should:
1. Visit BSE's Allotment Status Check page.
2. Select "Equity" under the "Issue Type."
3. Choose "ECOS (India) Mobility & Hospitality Limited" under the "Issue Name."
4. Enter the application number and PAN card ID.
5. Complete the captcha and click the search button.
Alternatively, investors can check the status through Link Intime's portal by:
1. Visiting the Link Intime Allotment Status Check page.
2. Selecting the IPO/FPO from the dropdown menu.
3. Choosing the application type (ASBA or non-ASBA).
4. Entering details based on the selected mode (Application number, Demat Account number, or PAN ID).
5. Completing the captcha and hitting submit.
The registrar, a SEBI-registered entity, ensures compliance with timelines for crediting shares to successful applicants, processing refunds, and addressing investor queries.
In conclusion, the IPO of ECOS (India) Mobility & Hospitality has garnered significant attention and enthusiasm from various investor segments, reflecting confidence in the company's business model and market position.
Despite some concerns regarding its reliance on a few major customers and vendor relationships, the company’s robust financial performance and strong customer base make it an attractive option for long-term investors.
With the allotment date approaching and the shares set to be listed soon, stakeholders eagerly await the next phase of ECOS (India) Mobility & Hospitality's journey on the public market.
Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
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