Shares of ECOS (India) Mobility & Hospitality will make its Dalal Street debut today, that is, on Wednesday, September 04, and the company is likely to deliver a healthy listing pop at the bourses, if one goes by the current trends from the grey market. However, the company has seen a mild correction in the unofficial market.
Ahead of its listings, shares of ECOS (India) Mobility & Hospitality were commanding a grey market premium (GMP) of Rs 125-130 per share, suggesting a listing pop of roughly 37-40 per cent for the investors. However, it was around Rs 160-170, when the company announced allotment of its shares.
ECOS (India) Mobility & Hospitality is set for a strong stock market debut. The IPO has garnered significant investor interest, evidenced by a robust subscription and a substantial grey market premium, said Shivani Nyati, Head of Wealth at Swastika Investmart.
"The IPO's valuation is on the higher side, based on the P/E ratio. Given the mixed financial performance and elevated valuation, investors may want to adopt a wait-and-see approach for the long term. However, the strong market demand for the IPO, as reflected in the subscription rate and GMP, suggests a potential for a positive listing," she said.
The IPO of ECOS (India) Mobility & Hospitality was open for bidding between August 28 and August 30. It had sold its shares in the price band of Rs 318-334 per share with a lot size of 44 shares and its multiples thereafter. It raised a total of Rs 601.20 crore from its IPO, which was entirely an offer-for-sale (OFS) of 1.80 crore shares.
The issue was overall subscribed a solid 64.26 times, thanks to a strong push from qualified institutional bidders (QIBs), whose quota was booked 136.85 times. The quota for non-institutional investors was subscribed 71.23 times. The portions reserved for retail investors saw bidding for 19.79 times during the bidding process.
ECOS (India) Mobility’s shares are expected to list with significant gains in the current market sentiments. ECOS (India) Mobility secured a substantial market share and established a Pan-India presence, operating in 109 cities across the country, said Master Capital Services. "The positive have driven strong demand and investor confidence, as reflected in the company’s GMP," it said.
Incorporated in February 1996, ECOS (India) Mobility & Hospitality is a chauffeur driven car rental service provider in India. The New Delhi-based company's primary business is to provide chauffeured car rentals and employee transportation services. It has been offering these services to corporate clients, including Fortune 500 companies in India.
Brokerages were mostly positive on the issue suggesting investors to subscribe to it for a long term. Equirus Capital and IIFL Securities were the book running lead managers of the ECOS (India) Mobility IPO, while Link Intime served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.