Ecos (India) Targets Public Listing with Promoter Share Sale Through IPO

1 Apr 2024 , 12:49 PM

New Delhi-headquartered Ecos (India) Mobility & Hospitality has taken the initial step towards raising capital through an initial public offering by filing preliminary papers with the Securities and Exchange Board of India (SEBI).

The IPO exclusively comprises an offer-for-sale (OFS) component, involving 1.8 Crore equity shares, with no fresh issue component. The OFS constitutes 30% of the total paid-up equity capital.

Promoters Rajesh Loomba will be divesting 99 lakh equity shares, while Aditya Loomba will be offloading 81 equity shares as part of the OFS. Consequently, all proceeds from the offering, except for IPO expenses, will flow to the selling shareholders, namely the promoters, with no funds directed to the company.

Ecos (India) Mobility & Hospitality operates as a provider of chauffeured car rentals (CCR) and employee transportation services (ETS), boasting a nationwide presence across 109 cities in India. Its fleet comprises over 9,000 vehicles ranging from economy to luxury cars, minivans, and luxury coaches.

The company follows an asset-light business model, with the majority of operations conducted through vendor-owned vehicles, which constituted 91% of the total fleet size in the first half of FY23, while the remaining 9% are owned by the firm.

In the financial year ending March FY23, the Loomba family-owned enterprise witnessed remarkable growth, with consolidated net profit soaring by an impressive 341.6% to reach ₹43.6 Crore, supported by robust top-line and operational performance. Revenue from operations surged by 187% to ₹422.7 Crore during the same period.

EBITDA for the last fiscal year experienced a substantial growth of 286.3%, reaching ₹69.7 Crore, accompanied by a margin expansion of 420 basis points to 16.5% compared to the preceding fiscal year.

In the first half of FY24, Ecos (India) Mobility & Hospitality has already achieved significant milestones, with profits totaling ₹30.4 Crore and revenues amounting to ₹268.5 Crore, surpassing half of the previous year’s bottom line and top line.

Equirus Capital and IIFL Capital Services have been appointed as merchant bankers for the issue, while Link Intime India will serve as the registrar for the offering.