What You Must Know About ECO Mobility IPO: Price Band ₹318 to ₹334 Per Share

ECOS (India) Mobility & Hospitality Limited, an Indian company, was founded in February 1996 and offers chauffeur-driven automobile rental services. The company's main lines of business are employee transportation services (ETS) and chauffeured vehicle rentals (CCR).

Fortune 500 firms in India are among the major clientele the organisation has been providing. As of 31st March 2024, the company operated in 109 cities across India, employing its 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.

ECOS (India) Mobility met the CCR and ETS needs of over 1,100 Indian organisations in Fiscal 2024. The startup has self-driving cars 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 daily trips. The company has a fleet of more than 12,000 vehicles, including luxury, compact, and economy models, as well as special vehicles like limousines, historical cars, luggage vans, and accessible transportation for individuals with disabilities.

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

As of March 31, 2024, the corporation employed 671 people in its critical operations team, which is responsible for solving problems and performing quality checks in real-time.

The Objective of the Issue

The proceeds from the ECO Mobility IPO will go entirely to the Selling Shareholders, meaning the company will not receive any direct financial benefit from the offer.

Each Selling Shareholder will receive a portion of the proceeds based on the number of shares they sell as part of the IPO, aligning their earnings with the shares they have offered.

Highlights of ECO Mobility IPO

ECO Mobility IPO is set to launch with a book-built issue of ₹601.20 crores. The issue comprises an offer for sale of 1.8 crore shares. Here are the key details of the IPO:

• The IPO opens for subscription on 28th August 2024 and closes on 30th August 2024.
• The allotment is expected to be finalised on 2nd September, 2024.
• Refunds will be initiated on 3rd September 2024.
• Credit shares to Demat accounts are also expected on 3rd September 2024.
• The company will tentatively list on BSE SME on 4th September 2024.
• The price band is set at ₹318 to ₹334 per share.
• The lowest lot size for the IPO application is 44 shares.
• Retail investors need to invest a minimum of ₹14,696.
• The minimum investment for sNII and bNII is 14 lots (616 shares), amounting to ₹205,744 and 69 lots (3,036 shares), amounting to ₹1,014,024.
• Equirus Capital Private Limited and Iifl Securities Limited are the book-running lead managers for the IPO.
• Link Intine India Private Limited serves as the registrar.

ECO Mobility IPO - Key Dates

ECO Mobility IPO Issue Details/Capital History

The book-built issue of ECO Mobility IPO is  ₹ 601.20 crore. The issuance's purpose is to sell 1.8 crore shares.

The subscription period for the ECO Mobility Initial Public Offering (IPO) begins on 28 August 2024 and ends on 30 August 2024. The allotment for the ECO Mobility IPO is anticipated to be completed on 2 September 2024. The BSE and NSE will host the ECO Mobility Initial Public Offering (IPO), with a provisional listing date of 4 September 2024.

ECO Mobility IPO Allocation & Minimum Investment Lot Size

Here is the timeline of the ECO Mobility IPO:

A minimum of 44 shares, as well as multiples of those shares, are up for bid. The table below shows the minimum and highest shares and amounts that retail investors and HNIs have invested.

SWOT Analysis: ECO Mobility Limited

Strengths:

• Innovative Product Offering: ECO Mobility is at the forefront of sustainable transportation solutions, tapping into the growing demand for eco-friendly vehicles.
• Experienced Management Team: The company is led by a seasoned team with deep expertise in the automotive and technology sectors, providing a strong foundation for growth.
• Market Position: ECO Mobility has established a strong brand presence and is recognised for its cutting-edge technology and reliability in the electric vehicle market.

Weaknesses:

• High Capital Expenditure: The company requires significant investment in R&D and manufacturing infrastructure, which could strain financial resources.
• Limited Market Penetration: Despite its strong brand, ECO Mobility's market reach is still limited compared to larger, more established competitors.
• Profitability Concerns: As a relatively new player in the market, the company may face challenges in achieving consistent profitability, especially given the competitive pricing in the EV industry.

Opportunities:

• Growing Demand for EVs: With global trends favouring environmental sustainability, the demand for electric vehicles is expected to surge, offering ECO Mobility significant growth potential.
• Government Incentives: Policies promoting clean energy and reduced emissions could provide financial and operational support for the company.
• Technological Advancements: Continuous innovation in battery technology and autonomous driving presents opportunities for ECO Mobility to enhance its product offerings and capture more market share.

Threats:

• Intense Competition: The electric vehicle market is becoming increasingly crowded, with established automotive giants and new entrants vying for market share.
• Regulatory Changes: While government policies currently favour EVs, any shifts in regulations or subsidies could impact the company's growth prospects.
• Supply Chain Disruptions: ECO Mobility's reliance on specific raw materials and components for EV production could expose it to risks related to supply chain disruptions, potentially affecting production and delivery timelines.

Financial Highlights: ECOS (India) Mobility & Hospitality Limited

Below are the financial results covering the quarter ending June 2024 and the fiscal years FY23 and FY22:

ECOS (India) Mobility & Hospitality Limited has shown strong financial growth over the past three years. By the end of March 2024, the company's assets nearly tripled compared to March 2022, reaching ₹296.66 crore. Revenue also significantly rose, jumping from ₹151.55 crore in FY22 to ₹568.21 crore in FY24. Profit after tax followed this upward trend, growing from ₹9.87 crore in FY22 to ₹62.53 crore in FY24. 

The company's net worth increased steadily, reflecting its strong financial position, while reserves and surplus grew from ₹71.5 crore in FY22 to ₹165.41 crore in FY24. Interestingly, the company's total borrowings decreased from ₹32.95 crore in FY23 to ₹21.72 crore in FY24, indicating better debt management. Overall, ECOS (India) Mobility & Hospitality Limited has demonstrated robust financial health and growth, with significant improvements across key financial metrics.