08-Apr-2024
2 mins read
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ECOS (India) Mobility and Hospitality IPO is offering a 100% book-built public issue. This upcoming IPO is offering an offer for the sale of up to 1.8 Crore of equity shares. The face value is reported as Rs. 2 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for Non-Institutional Investors and the remaining 35% or more reserved for Retail Individuals. Application for public issue and subscription opening/closing dates and other important dates will be announced soon; however, keep in mind that the public offering is proposed to be listed on the NSE and BSE exchanges.
About the Company
ECOS (India) Mobility and Hospitality is the largest and most profitable chauffeur driven mobility provider to corporates in India, in terms of revenue from operations and profit after tax for Fiscal 2023 (Source: F&S Report). They are primarily engaged in the business of providing chauffeured car rentals (“CCR”) and employee transportation services (“ETS”) and have been providing these services to corporate customers, including Fortune 500 companies in India, for more than 25 years. As of September 30, 2023, we have a pan-India presence in 109 cities through our own vehicles and vendors, spread across 21 states and four union territories in India, which underscores our deep-rooted and extensive footprint and demonstrates our penetration into diverse regions across India. They also provide self-drive cars in the cities of Delhi, Gurugram, Mumbai, and Bengaluru. They have also provided self-drive cars outside India through vendors.
Objectives of the Public Offering
The Company will not getting any proceeds of the OFS by the Selling Shareholders. Each of the Selling Shareholders, i.e. Rajesh Loomba and Aditya Loomba, will be entitled to the respective proportion of the proceeds of the Offer for Sale after deducting their portion of the Offer related expenses and the applicable taxes thereon.
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Financials of the Company (Amt in Crores)
The Company reported net revenue of Rs 425.43 Crore, assets worth Rs 45.75 Crore, and profit after tax reported as Rs 43.59 Crore for the FY 22-23. It is clear that the PAT increased by 341.64%, and revenue rose by 180.72%.
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 51.33 | 45.75 | 19.38 | 26.69 |
| Revenue | 272 | 425.43 | 151.55 | 109.49 |
| Profit After Tax | 30.41 | 43.59 | 9.87 | 3 |
| Net Worth | 145.33 | 115.13 | 71.56 | 61.79 |
| Total Borrowing | 24.35 | 32.95 | 3.34 | 14.87 |
Key Performance Indices of ECOS (India) Mobility and Hospitality Limited
Key performance indicators of the Company reported a Return on Capital Employed as 40.90%, a Return on Net Worth of 46.70%, a Profit after-tax margin of 10.25% and a Return on Equity as 46.70% for the year ended March 2023. If we look at the EBITDA margin, it is reported as 16.50% for the same FY.
Lead Managers, Registrar of IPO & Promoters of the Company
The IPO is managed by Equirus Capital Private Limited and IIFL Securities Limited, which are the book-running lead managers. Link Intime (India) Private Limited has been appointed as the registrar for the issue, and the promoters of the ECOS (India) Mobility and Hospitality Limited are Rajesh Loomba, Aditya Loomba, Rajesh Loomba Family Trust and Aditya Loomba Family Trust.
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