Ecos India IPO to open on August 28; set price band at ₹318-334

23 Aug 2024 , 10:17 AM

Ecos (India) Mobility and Hospitality Limited, a Himachal Pradesh-based online hotel booking platform, has officially filed its red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI). The company has set the price band for its upcoming initial public offering (IPO) at ₹318 to ₹334 per share. The IPO is scheduled to open for subscription on August 28, 2024, and will close on August 30, 2024. The anchor book for the IPO will be launched on August 27, 2024.

Investors interested in the IPO can apply in lots of 44 shares each. The company has allocated 50% of the shares for Qualified Institutional Buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors. Equirus Capital Private Limited and IIFL Capital Services Limited are the appointed book-running lead managers for the issue, while Link Intime has been selected as the registrar.

This IPO is a 100% offer-for-sale (OFS) by the company’s promoters and existing investors, meaning there will be no fresh issue of shares. As part of the offering, promoters Rajesh Loomba and Aditya Loomba will be offloading up to 9,900,000 and 8,100,000 equity shares, respectively.

According to the RHP, since this is an OFS, the company will not receive any proceeds from the offer. Instead, the proceeds will go to the selling shareholders in proportion to the shares they sell.

In its financial performance, Ecos (India) Mobility reported a revenue of ₹554 crore in FY24, marking a 31% increase from ₹422 crore in FY23. The company’s net profit after tax for FY24 stood at ₹62.531 crore, reflecting a 43% growth from ₹43.591 crore in FY23.

As of March 31, 2024, Ecos (India) Mobility had a nationwide presence, operating in 109 cities across 21 states and four union territories. The company has made significant strides in meeting the Corporate Car Rental (CCR) and Employee Transportation Services (ETS) requirements of over 1,100 organizations in India during Fiscal 2024.

Ecos (India) Mobility also offers self-driven car services in major cities, including Delhi, Gurugram, Mumbai, and Bengaluru.