ECOS (India) sets IPO price band at Rs 318-334, opens August 28 with share offering worth Rs 601.2 crore

ECOS (India) Mobility and Hospitality, a provider of mobility services to corporates and other clients, has announced the price band for its upcoming IPO, set between Rs 318 and Rs 334 per equity share, each with a face value of Rs 2. The public offering will open on Wednesday, August 28, and close on Friday, August 30. The offer for anchor investors is scheduled for Tuesday, August 27, as revealed by the company during a pre-IPO press conference on Friday.

The company will be offering 18,000,000 equity shares, amounting to Rs 601.2 crore. The shares will be listed on both the BSE and NSE. Equirus Capital Private Ltd. and IIFL Securities Ltd. are acting as the book-running lead managers for the IPO.

According to the offer structure, qualified institutional buyers can bid for no more than 50% of the offer, non-institutional investors have been allocated at least 15% of the offer, and retail investors will be offered no less than 35% of the total shares.

ECOS claims to be the largest and most profitable provider of chauffeur-driven car rentals and employee transportation services to corporates in India, based on revenue and net profit for FY23. The company has a pan-India presence, operating in 109 cities and serving over 1,100 clients across the country. ECOS operates on an asset-light model, with only about 5–10% of its vehicles being company-owned out of its total fleet of about 12,000 vehicles. 

Rajesh Loomba, CMD of the company, stated that the selling shareholders will be entitled to all proceeds from the offering, and the company will not receive any proceeds from the offer.

Rajesh Loomba, along with his younger brother Aditya Loomba, Nidhi Seth, the Rajesh Loomba Family Trust, and the Aditya Loomba Family Trust, are the promoters of this bootstrapped company. Together, they hold 58,649,983 equity shares, representing 97.75% of the paid-up equity share capital.

The market for employee transportation services in India was estimated at $6.1 billion in FY23, with organized players holding approximately 15% of the total market. Additionally, the market for chauffeured car rentals in India stood at about USD 4.7 billion in FY23, with organized players capturing around 25% of the market, according to an F&S report cited by the company.