 "ECOS Mobility IPO GMP surges 40%; experts eye double digit listing gains")
ECOS Mobility IPO listing price prediction: As investors await the listing of ECOS (India) Mobility & Hospitality shares on the bourses on Wednesday, September 4, 2024, the grey market premium hints at a favourable debut for the company's shares on the BSE and NSE. The unlisted shares of ECOS Mobility, whose IPO allotment was finalised yesterday, were quoted trading at a premium of Rs 135, or 40.42 per cent higher than the upper end of the issue price of Rs 334, according to several sources that track grey market activities.
The current GMP, however, is lower than Rs 160 quoted on August 28, 2024, when the issue opened for subscription.
The current GMP, however, is lower than Rs 160 quoted on August 28, 2024, when the issue opened for subscription.
Should the current grey market trends sustain, ECOS Mobility shares may list on the BSE and NSE at around Rs 469 (upper end of IPO price + GMP). Thus, investors who have been allotted ECOS Mobility shares can expect a gain of over 40 per cent per share upon listing.
Available at a price band of Rs 318-Rs 334 per share, and a lot size of 44 shares, the public issue witnessed favourable investor interest, being oversubscribed by a staggering 64.26 times. The highest demand came from Qualified Institutional Buyers (QIBs), who subscribed 136.85 times, followed by Non-Institutional Investors (NIIs) at 64.37 times.
Despite valuations being slightly on the higher side and the offer being 100 per cent OFS, ECOS India managed to receive a healthy response on the last day of the issue from all types of investors, especially from the QIB category, who demanded 136 times the limit, said Prashanth Tapse, Senior VP (Research), Mehta Equities. He believes the investor demand has come considering the company's asset-light model, extensive network across 109 cities, and strong relationships with Fortune 500 and BSE 500 companies, which position it well to capitalise on the growing corporate mobility market. Its presence in high-growth sectors like IT, healthcare, and e-commerce underscores its potential for continued growth.
Considering market mood and sectoral high-growth factors, Tapse expects a decent listing gain of over 20 per cent against the issue price of Rs 334 per share. "We had recommended our investors to subscribe with caution, which can generate decent listing gains of over 20 per cent on the issue price on the back of market optimism. Post-listing, on the valuation front, it can move from reasonably valued to stretched valuations, which could trigger profit-booking at higher levels."
Meanwhile, Shivani Nyati, Head of Wealth, Swastika Investmart, said, "While the company has demonstrated top-line growth, profitability has declined. It's important to note that this is a complete offer for sale, meaning the company will not receive any additional funds from the IPO."
According to Nyati, 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 added.
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About ECOS (India) Mobility & Hospitality
ECOS Mobility offers chauffeured car rentals (CCR) and employee transportation services (ETS) to corporate customers. ECOS Mobility also provides specialised vehicles, including luggage vans, limousines, vintage cars, and accessible transportation options for individuals with disabilities, ensuring a comprehensive and inclusive transportation solution