Ecos (India) Mobility and Hospitality Limited

About  Ecos (India) Mobility and Hospitality Limited

Incorporated in 1996, Ecos (India) Mobility and Hospitality Limited is a chauffeur-driven mobility provider to corporates in India. In terms of FY23 revenue and profitability, the company is the largest and most profitable in its segment.

The company operates in the B2B2C business segment, wherein its clients are corporate companies, and its end consumers are their employees, clients, guests, or visitors. It offers chauffeured car rentals (CCR) and employee transportation services (ETS) to its clients.  

It also provides CCR services in 30+ countries and cars on a self-drive basis in the cities of Delhi, Gurugram, Mumbai, and Bengaluru.

In FY24, the company completed more than 31 lakh trips, averaging over 8,400 trips in a day through its CCR and ETS segments. It has a presence in 109 cities across 21 states and four union territories in India and has served more than 1,100 organisations. The company offers its services to 42 Fortune 500 companies and 60 BSE 500 companies. 

The company operate a fleet of more than 12,000 economy, luxury, and luxury cars, minivans, and luxury coaches. It also provides speciality vehicles such as luggage vans, limousines, vintage cars, and accessible transportation for people with disabilities. 

It operates these fleets on an asset-light model, where the number of vehicles the company owns is significantly lower than the vehicles sourced from its vendors. In FY24, the company-owned vehicles were 5.8% of the total fleet size.  

Ecos (India) Mobility caters to multiple industries, including information technology, business process outsourcing, consultancy, healthcare, e-commerce, pharmaceutical, legal, and manufacturing. Some of its customers include Indigo, HCL, Safexpress, Deloitte, Urban Company, IndusInd, Foresight, HDFC, Thomas Cook, Grant Thornton Bharat, and Walmart Global Tech.

Between FY22 and FY24, it saw a CAGR rise of 55% in its revenue from operations and 85% in its profit. Moreover, the employee transportation service market is expected to grow at a CAGR of over 11% to reach ₹1097.6 billion ($13.2 billion) revenue in CY2030 amid India's growing economy, the rise of the organized sector, and increasing employee expectations for convenient commutes. These factors could benefit the company.

And now, Ecos (India) Mobility and Hospitality Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹601.20 crore, which is entirely of an offer for sale. The money raised will be received by the selling shareholders. Its shares will be listed on the NSE and BSE.

Here are key details about the Ecos (India) Mobility and Hospitality IPO:

Financial snapshot

Here’s a quick look at Ecos (India) Mobility and Hospitality Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. India’s largest and most profitable chauffeur-driven mobility provider in the corporate mobility market, which has experienced significant growth in recent years due to the expanded presence of MNCs, Indian corporates, SMEs, and high-net-worth individuals who prefer to hire cars for official trips rather than owning cars and keeping drivers in the company.
2. The company has high customer retention. In FY24, 16% of its total revenue from operations came from customers with more than 10 years of relationship, 16% from customers with 7-10 years of relationship, and 23% from customers with 5-7 years of relationship. 
3. Pan-India presence with operations in 109 cities in India with offices in Bengaluru, Gurugram, Mumbai, Hyderabad, New Delhi, Pune, Noida, Chennai, Kolkata, Ahmedabad, Jaipur, Coimbatore, Rohtak and Lucknow.
4. The company has established a brand built over the years with membership in IATO, OTOAI, TAAI, IEIA, EEMA, CoreNet, GBTA, ITTA to increase visibility and showcase its USPs at these forums.
5. Comprehensive technology ecosystem including online booking tool, chauffeur mobile application, customer mobile application, CabDrive Pro, and RentNet application. 
6. Consistent financial performance with EBITDA margins of 12%, 16%, and 16% in FY22, FY23, and FY24, respectively. 

Risks and threats

1. It depends on its relationships with vendors who supply vehicles and chauffeurs, as 94% of its total fleet contained vehicles sourced from vendors in FY24.
2. The company is heavily dependent on global capability centres. In FY24, 66% of its revenue from ETS customers came from the GCC industry, and a downturn would adversely impact its revenue. 
3. Engages 750 employees or independently contracted chauffeurs, and misconduct may be difficult to detect and could harm its brand and reputation.
4. Intense competition in the chauffeur-driven mobility provider industry could affect its pricing and, subsequently, its profitability. 
5. An increase in the prices of new vehicles and increased fleet costs may adversely affect its business. 
6. The company is subject to risks associated with expansion into new geographic regions within India and abroad as it is expanding its presence in tier-II and tier-III cities in India from 81 cities in FY21 to 86 cities in FY24. 

Ecos (India) Mobility and Hospitality Limited IPO details

| Ecos (India) Mobility and Hospitality Limited IPO date

According to the offer document filed by the company with the SEBI, the Ecos (India) Mobility and Hospitality IPO’s opening date – in other words, the Ecos (India) Mobility and Hospitality IPO launch date – will be 28th August 2024. The Ecos (India) Mobility and Hospitality IPO closing date is 30th August 2024. After this, investors will be updated about the allotment status on 2nd September 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 3rd September 2024. The Ecos (India) Mobility and Hospitality IPO listing date is 4th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.

| Ecos (India) Mobility and Hospitality Limited IPO Price Band

The IPO is an offer for sale. The Ecos (India) Mobility and Hospitality IPO price band has been set between ₹318 and ₹334 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Ecos (India) Mobility and Hospitality IPO listing price will be determined on 4th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Ecos (India) Mobility and Hospitality Limited IPO Lot size

The Ecos (India) Mobility and Hospitality IPO details have been declared. The Ecos (India) Mobility and Hospitality IPO lot size is set at 44 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Ecos (India) Mobility and Hospitality IPO issue size is approx ₹601 crore. 

How to pre-apply for the Ecos (India) Mobility and Hospitality Limited IPO?

You can pre-apply for the Ecos (India) Mobility and Hospitality Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Ecos (India) Mobility and Hospitality Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Ecos (India) Mobility and Hospitality Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Ecos (India) Mobility and Hospitality Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Ecos (India) Mobility and Hospitality Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Ecos (India) Mobility and Hospitality Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Ecos (India) Mobility and Hospitality Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Ecos (India) Mobility and Hospitality Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Ecos (India) Mobility and Hospitality Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Ecos (India) Mobility and Hospitality Limited IPO

To apply for the Ecos (India) Mobility and Hospitality Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Ecos (India) Mobility and Hospitality Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Ecos (India) Mobility and Hospitality Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.