ECOS Mobility revs up in weak market, lists at 17% premium on BSE, NSE

Ahead of their debut on the bourses, the shares of Ecos (India) Mobility & Hospitality were quoted at a strong grey market premium of Rs 126 or 37.37 per cent, indicating a favourable market debut

ECOS Mobility IPO listing on BSE, NSE: Shares of Ecos (India) Mobility & Hospitality kicked off their journey on the bourses on a strong note amidst mixed market sentiments on Wednesday. ECOS Mobility shares listed at Rs 391.30 on the BSE, reflecting a premium of 17.15 per cent from the issue price of Rs 334.

On the NSE, shares of ECOS Mobility listed at a premium of 16.76 per cent at Rs 390.

Thus, with this strong debut, the shares of ECOS Mobility yielded a return of Rs 57.30 or over 17 per cent apiece to the investors who were allotted the company's shares.

Ahead of their debut on the bourses, the shares of ECOS Mobility were quoted at a strong grey market premium of Rs 126 or 37.37 per cent, indicating a favourable market debut, according to several sources tracking grey market activity.

 

Commenting on the ECOS Mobility shares listing, Shivani Nyati, Head of Wealth at Swastika Investmart, said, "This positive performance was fueled by the strong investor interest in the IPO's 64.18 times subscription and a substantial grey market premium. While the listing was encouraging, investors should remain cautious due to the company's mixed financial performance." 

According to Nyati, despite top-line growth, profitability has declined, indicating potential challenges in managing costs and maximising returns. The IPO's valuation appeared higher, based on the P/E ratio, which might have contributed to the relatively modest listing gain 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.

“In conclusion, ECOS Mobility's strong listing debut is a positive sign, but the mixed financial performance and elevated valuation warrant a cautious approach. Those who wish to hold it may consider keeping a stop loss at around Rs 350," she said.

Offered at a price band of Rs 318-334 per share, with a lot size of 44 shares, the ECOS Mobility IPO received favourable interest from investors, being oversubscribed by a whopping 64.26 times, led by Qualified Institutional Buyers (QIBs), who subscribed 136.85 times, followed by Non-Institutional Investors (NIIs) at 64.37 times.

The public issue of ECOS Mobility, which comprised an entire offer for sale of 18,000,000 shares with a face value of Rs 2 apiece, ended for subscription on Friday, August 30, 2024. Following that, the allotment of ECOS Mobility IPO shares was finalised on Monday, September 2, 2024.

ECOS Mobility garnered reviews for its IPO from several brokers, including Geojit, Swastika Investment, and Anand Rathi Research. READ MORE

Ecos (India) Mobility & Hospitality (ECOS) offers a range of services, including chauffeured car rentals (CCR) and employee transportation solutions (ETS). The CCR segment caters to corporate clients, providing B2C services for their employees, clients, guests, or visitors. In contrast, the ETS segment focuses on helping businesses manage their employees' daily commutes, providing ground transportation solutions from home to office and back.