However, the listing was slightly below expectations, as the shares were trading at a grey market premium (GMP) of 48% above the issue price before the debut.
Ecos Mobility’s IPO received an overwhelming response, with a subscription rate of 64 times, driven largely by non-institutional investors.
“While the listing was encouraging, investors should remain cautious due to the company’s mixed financial performance,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
“The IPO’s valuation appeared higher, based on the P/E ratio, which might have contributed to the relatively modest listing gains compared to the pre-listing hype. Additionally, the company’s status as a complete offer for sale means it won’t receive any new funds from the IPO, potentially limiting its ability to accelerate growth or address challenges.””ECOS Mobility & Hospitality’s strong listing debut is a positive sign, but the mixed financial performance and elevated valuation warrant a cautious approach. Those who want to hold it may keep a stop loss at around 350,” Nyati advised.Meanwhile, Master Capital Services suggested, “Investors with a medium- to long-term perspective may consider investing in the company, particularly during market dips.”ECOS Mobility has been providing chauffeured car rentals and employee transportation services to corporate customers, including Fortune 500 companies in India, for over 25 years.
The company operates a fleet of over 9,000 economy-to-luxury cars, minivans, and luxury coaches which consist of various categories such as luxury vehicles (including vehicles from automobile brands such as Audi, BMW, and Mercedes-Benz), economy vehicles, premium vehicles, and buses/ vans.
It also provides special vehicles such as luggage vans, limousines, vintage cars, and vehicles for accessible transportation for people with disabilities.
The company provides services to its customers operating in a range of industries, including information technology, business process outsourcing, global capability centres (GCCs), consultancy, healthcare, e-commerce, pharmaceutical, legal, and manufacturing including HCL Corp, HDFC Life, Thomas Cook, India, WM Global Tech among others.
In FY24, the company’s revenue from operations rose 31% year-on-year to Rs 554 crore, while profit after tax (PAT) increased 43% to Rs 62.5 crore in the same period.
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